Ford Motor Co. today reported a quarterly loss on a writedown of its investment in self-driving company Argo AI.
The Dearborn, Mich.-based automaker posted a loss of $827 million, or 21 cents a share, for the third quarter. That compares with a year-earlier profit of $1.8 billion, or 45 cents.
Ford recorded a $2.7 billion pretax expense in writing down its investment in Argo, which was backed by Ford and Volkswagen AG. Argo is shutting down, TechCrunch reported Wednesday afternoon.
The Michigan-based automaker decided in September to shift from an Argo-developed assisted-driving system to technology it is developing internally.
Ford said it also had about 40,000 built vehicles that still needed key parts in inventory at the end of September. The company said it expects to complete the vehicles and sell them to dealers during 2022’s final quarter. The automaker also had about $1 billion in higher-than-expected payments to suppliers.
Ford, like other manufacturers, is coping with a global shortage of computer chips. Supplies of such chips have improved but some analysts have said the shortages may persist into 2024.
The automaker said some financial measures improved from its previous estimates.
Ford said adjusted earnings before interest and taxes totaled $1.8 billion, more than the $1.4 billion to $1.7 billion the company estimated in September. Revenue for the quarter climbed to $39.4 billion, a 10 percent increase from the same period in 2021.
Ford is “making smart choices about how we deploy capital even as we learn and adapt,” CEO Jim Farley said in a statement.
The automaker is developing new electric vehicles while it relies on traditional internal combustion engine-powered vehicles to generate profits to finance new investments.
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