Ford Motor Co. executives on Wednesday provided greater insight into costs that are weighing on the Dearborn automaker's financial results, with CEO Jim Farley saying "fundamental change" is needed, especially around how vehicles are engineered, sourced and built.
Those costs add up to a $7 billion to $8 billion disadvantage for Ford compared with its traditional rivals, Chief Financial Officer John Lawler said; those expenses will be the target of reductions in the coming years amid the costly shift to electric vehicles.
During the company's fourth quarter and full-year 2022 earnings report earlier this month, Farley referenced "dysfunctionality" within the company's legacy business that was dragging down results. He also expressed frustration about Ford leaving some $2 billion in profits on the table last year, largely because of lost production volumes in the fourth quarter. The automaker reported a net loss for the year and missed its earnings guidance.
