[Cowherd.J]

Ford released their 2020 results for Q1 and as a result of the pandemic they are reporting a net loss of $2.0 billion; adjusted earnings before interest and taxes was negative $632 million, including estimated negative effect of at least $2 billion from coronavirus.

Here's the link to the full report - https://media.ford.com/content/dam/fordmedia/North America/US/2020/04/28/1q-ford-financial.pdf

 

[ChasingCoral]

Didn’t cause as big a stock drop as I expected. I guess folks weren’t that surprised. There was even a bit of rally near the close.

 

[MachDrive]

Didn’t cause as big a stock drop as I expected. I guess folks weren’t that surprised. There was even a bit of rally near the close.

Most investors are being tolerant of the pandemic situation. These are not losses due to Ford’s general performance.
As a cost-reduction measure, Ford has pushed back its autonomous driving plans with VW to 2022, and cancelled its currect development of a Lincoln/Rivian EV, making the first Lincoln EV in-house instead. These actions, and others, will reduce the losses by hundreds of millions over the next two quarters.
Ford expects the next quarterly report (in July) to have a loss in the $5 billion range.

 

[Cowherd.J]

Most investors are being tolerant of the pandemic situation. These are not losses due to Ford’s general performance.
As a cost-reduction measure, Ford has pushed back its autonomous driving plans with VW to 2022, and cancelled its currect development of a Lincoln/Rivian EV, making the first Lincoln EV in-house instead. These actions, and others, will reduce the losses by hundreds of millions over the next two quarters.
Ford expects the next quarterly report (in July) to have a loss in the $5 billion range.

I was really surprised to see them cancel the Lincoln/Rivian partnership. Maybe the circle back and do something else with them once things get back to normal.

 

[MachDrive]

I was really surprised to see them cancel the Lincoln/Rivian partnership. Maybe the circle back and do something else with them once things get back to normal.

The partnership is not cancelled, just the Rivian-based Lincoln planned for 2022. It wasn’t far along enough in development, and would be a huge expense for both companies to proceed with it in this economic climate.
Ford still has a big financial stake in Rivian. Both companies said future projects together still on the table.