Ford saw a 25% year-over-year decline in net income for Q3 2024, attributing the drop to a $1 billion charge related to a shift in its electric vehicle (EV) strategy. The Michigan-based automaker announced that net income fell to $900 million, a result of the company's decision to adjust its EV approach following a period of significant losses.
Ford’s adjusted operating earnings, however, rose to $2.6 billion, an 18% increase over the $2.2 billion reported for the same period last year. Total revenue for the quarter also saw an uptick, reaching $46 billion, a 5% increase compared to last year.
In recent months, Ford has faced mounting challenges, including increased warranty costs and persistent EV-related losses. The company previously outlined its commitment to making EV models profitable within a year of launch, signaling a significant shift in its production and sales strategy. The new approach comes after Ford announced in August that it was reassessing its EV operations to improve financial sustainability.
During the quarter, Ford reported that sales were flat year-over-year, though sales of hybrid vehicles grew significantly, rising by 38%. In contrast, General Motors, Ford’s main competitor, posted an increase in both third-quarter revenue and pretax profits, driven by stable prices, cost reductions and robust demand for its high-margin vehicles. GM’s financial results also benefited from a favorable comparison to last year’s UAW strike costs and other expenses.
The automaker’s ongoing challenges highlight the complexities of the EV market as legacy car manufacturers navigate fluctuating demand, technological advancements and competitive pressures.
