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Ford gives earnings warning for 2019...ugh.


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2018 is a year Ford wants to forget but unfortunately, the market and analysts are not that forgiving, prepare for "the sky is falling" and warnings of dire consequences  in the near future. Mostly because Hackett is a horrible communicator on near future plans.

Edited by jpd80
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2019 will be tough primarily because the F-Series is facing a full year of competition that will likely squeeze them on sales and/or margins.  And we're still looking at the end of the year before we are actually seeing the new products, preceded and followed by a period of limited inventory.  Not to mention phasing out Taurus, Fiesta, Flex, and MKT.  Ranger should be able to take the edge off just a little, but Focus Active was suppose to add some help and that didn't work out so it's going to look a little more grim than they wanted.  Things should start turning around in 2020 and 2021, especially in contrast to 2019.  But, hang onto your butts and just focus on the shiny new products they are showing.  My prediction is that Ford sales will be down about 8% in 2019 but with improved margins.  

Edited by Assimilator
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18 minutes ago, fuzzymoomoo said:

Size-wise it makes sense but we've been told for decades that Europeans don't like that kind of rugged styling.

I think its something different all together-other rumors had the Maverick and Bronco not getting RHD-which would precude the Maverick from being built there with the UK being a major market. Not to mention it seems primarly a NA product.

I think its going to be something to replace the B-Max and the Maverick appears to be based on a C platform-I'm gonna assume the Maverick is going to roughly the size of the current Escape and the new Escape will grow a bit.

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You mean this one...

Quote

 

e2bee3d3-ford-fiesta-based-suv-prototype

https://www.carscoops.com/2019/01/mystery-new-ford-fiesta-based-suv-coming-europe-2020/

The as-yet-unnamed model will compete with small SUVs such as the Mazda CX-3, Hyundai Kona, Kia Stonic, and the like. The prototype you see in the photos is in production trim but features heavy camouflage and padded panels to disguise its shape. Still, we can spot details such as the high front end and the sloping roofline that gives it a four-door coupe vibe.

It definitely looks bigger and better-proportioned than the EcoSport, as well as more dynamic. Whether this new model will replace directly the EcoSport or the latter will get a replacement of its own – as suggested by the spy shots of a test mule in September 2018 – isn’t certain as of yet but we will probably find out in the coming months.

 

 

Edited by jpd80
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Don't forget that Ford Land is burning cash like crazy working on the Research and Engineering Center rebuild as well as the rebuild of the Michigan Central Train Station.

There are a couple of "added starter" to this these two major projects.  Kind of quietly, Ford decided they need two new computer centers.  One is behind the Ford Credit building and the other is near the Flat Rock plant.  Good move recognizing how important computers and the data that they create are important to the day-to-day operations.  Two centers is for redundency.

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58 minutes ago, theoldwizard said:

Don't forget that Ford Land is burning cash like crazy working on the Research and Engineering Center rebuild as well as the rebuild of the Michigan Central Train Station.

There are a couple of "added starter" to this these two major projects.  Kind of quietly, Ford decided they need two new computer centers.  One is behind the Ford Credit building and the other is near the Flat Rock plant.  Good move recognizing how important computers and the data that they create are important to the day-to-day operations.  Two centers is for redundency.

Well, it's likely cheaper than outsourcing all of their data collection to AWS or the like.  And redundant data centers is the norm today.  I'm actually in the process of setting that up for my side business that does app dev and web hosting.  Hardware is cheap.  Losing data or having your system down while customers depend on you is expensive.

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Redundant data centers have been the norm since the 60s.   If you have cloud native apps it’s easy to use AWS or Azure for Disaster Recovery and it’s cheap too because you don’t pay much until you actually use that capacity.   But if your apps are not cloud native or cloud enabled (and I’m sure most of Ford’s apps are not) then it’s usually cheaper to just build your own data center.

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11 minutes ago, fordmantpw said:

Well, it's likely cheaper than outsourcing all of their data collection to AWS or the like.  And redundant data centers is the norm today.  I'm actually in the process of setting that up for my side business that does app dev and web hosting.  Hardware is cheap.  Losing data or having your system down while customers depend on you is expensive.

thanks for reminding me I need to buy a couple more hard drives for my computer I'm converting to a server 

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1 hour ago, fuzzymoomoo said:

thanks for reminding me I need to buy a couple more hard drives for my computer I'm converting to a server 

Western Digital is where it's at!  I've had a server running 24x7 for nearly 10 years, and every WD HDD is still going strong.  I am replacing it though as I don't want to push my luck...

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5 minutes ago, fordmantpw said:

Western Digital is where it's at!  I've had a server running 24x7 for nearly 10 years, and every WD HDD is still going strong.  I am replacing it though as I don't want to push my luck...

I only use their HDDs. I had 4 in that box (2x80GB, 500GB and 1TB) and I just took one of the 80s out because it kept reading as full even though all that was on it was a clean install of windows and that's about it. I want to add 2 more TB drives and switch the remaining 80 to a SSD since that's the one I'm using for the OS. 

Edited by fuzzymoomoo
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 Just on earnings, Ford is indicating that it expects a drop in pre-tax profit for 2018 to about $7.0 Billion, down $2.6 billion compared to 2017.

Ford also said that they expected 2019 to be better with profits returning to the 2017 levels, so maybe the worst financially is behind them..

Edited by jpd80
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17 minutes ago, jpd80 said:

 Just on earnings, Ford is indicating that it expects a drop in pre-tax profit for 2018 to about $7.0 Billion, down $2.6 billion compared to 2017.

Ford also said that they expected 2019 to be better with profits returning to the 2017 levels, so maybe the worst financially is behind them..

Look at how many models are in their last model year before replacement. Decontenting finally shows appreciable profit results.

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34 minutes ago, fuzzymoomoo said:

Look at how many models are in their last model year before replacement. Decontenting finally shows appreciable profit results.

Nothing surprises me about this result, 2018 has been pretty bad all over for Ford, even though F Series is chugging away printing money..

Ford keeps using F Series as its back stop to cover all the losses and funding of projects, take that away and everything falls over.

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