Ford posted a net loss of $1.7bn and drop of 5pc in the revenue to $39.7bn in 2019, from the prior year. Sales in China fell by over 26pc in 2019.
The company’s net loss was a result of higher warranty costs during the second half of 2019, lower vehicle sales volumes reduced results from Ford Credit, and higher investment in the development of next-generation self-driving and electric vehicles said the company. Ford will ramp up production of its new vehicles launched in 2019 in the near term.
Ford is in the process of an $11bn restructuring. The company is reshaping its portfolio of vehicles by shutting its less-profitable units, primarily overseas. Ford is a large consumer of steel in the US. A fall in sales translates to lesser demand for steel which resulted in steel companies posting losses. Demand for steel in the US slowed in 2019, with imports falling by over 15pc to 29.9mn mt from the year prior.
In 2019, the company’s sales in Europe were 1,331,300, a drop of 1.4pc from the prior year. In China Ford sold 568,000 vehicles, 26.1pc down from 2018. The year was challenging for the Chinese automotive market and sales declined in the second half, according to the company. This downtrend could also continue in 2020, as per the company. In the US, 601,862 units were sold in 2019 down by 1.3pc from the prior year.
Ford also said it would be too soon to assess the impact of the Coronavirus on its operating units in China.