In the third quarter of 2023, Ford showcased its progress in realizing the growth potential of the customer-centric Ford+ plan, emphasizing the pivotal role of improved quality and cost efficiency in driving profitability. President and CEO Jim Farley expressed his optimistic outlook for Ford's transformation under the Ford+ initiative, highlighting the company's transition into a more dynamic, customer-focused entity at the intersection of vehicles, renowned brands, innovative software, and high-value services.
Ford achieved a noteworthy performance in the third quarter, reporting growth in sales for its gas, hybrid, and electric vehicle lines. The F-Series further solidified its standing as America's best-selling truck, securing its position for the 47th consecutive year, and Ford emerged as the leading brand in the United States during the first nine months of 2023.
Financially, the third quarter results demonstrated significant improvements. Ford recorded revenue of $44 billion, marking an impressive 11% increase compared to the same period in 2022, despite stagnant vehicle wholesales. Notably, the company achieved a net income of $1.2 billion, a substantial turnaround from a net loss of $827 million in the previous year. This loss included a $2.7 billion non-cash, pretax impairment related to Ford's investment in Argo AI. Furthermore, adjusted earnings before interest and taxes (EBIT) for the third quarter surged to $2.2 billion.
"We’re also radically changing how we work with a series of actions that put the right people with the right capabilities in the right places across the organization, so that our promise isn’t masked by cost and quality issues," Farley said.
To address quality and cost concerns, Ford recently underwent a series of organizational changes under the Ford+ initiative. These changes established an end-to-end global industrial system led by Chief Operating Officer Kumar Galhotra. This system, encompassing vehicle engineering, cycle planning, gas and hybrid programs, supply chain management, and manufacturing, is designed to function as an efficient operational engine for all three automotive business segments: Ford Blue, Ford Model e, and Ford Pro.
Jim Farley underlined that the organization led by Kumar Galhotra, in collaboration with Doug Field's EVs, Digital, and Design team, will not only deliver innovative technologies and products but also prioritize quality enhancement, cost reduction, and waste elimination. These initiatives reflect Ford's commitment to delivering excellence to its customers while ensuring financial sustainability.
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