Connect with us


Ford’s Raising Dividends And Slowing Electric Car Production

Avatar of Salman Ahmad



Ford's Raising Dividends And Slowing Electric Car Production

(CTN News) – Ford announced it would increase dividends to shareholders, beginning with a dividend increase of 18 cents per share in the first quarter of 2024.

After earning US$10.4 billion before taxes in 2023, the U.S. auto giant forecasts $10 billion to $12 billion in pretax profit for 2024, largely due to profits generated by Ford Pro commercial vehicles and Ford Blue combustion vehicle units, which offset losses generated by Model E electric vehicles.

Several Ford executives have indicated that the company is slowing investment in its new EV production capacity in order to match slower demand following major price changes for electric vehicles over the past year. According to Marin Gjaja, head of Model E EV business,

The next generation of Ford electric vehicles will be launched only once they are profitable.

During this year, Ford’s North American truck and SUV businesses, both commercial and consumer, are expected to generate a free cash flow of $6 billion to $7 billion. A commitment has been made by the company to return 40 percent to 50 percent of free cash flow to investors.

During a conference call with reporters the same day, Chief Financial Officer John Lawler stated, “Whenever that regular dividend does not reach 40 percent to 50 percent, we will provide a supplemental dividend. Consistency will be very important.”

According to Ford’s Chief Executive Jim Farley, the company is overhauling its electric vehicle strategy in response to slow EV adoption by mainstream consumers and Tesla’s price war.

The automaker plans to invest in larger EVs, such as trucks and vans, and a “skunk works” team is developing a low-cost small EV design.

During the next year, Ford will invest more in gas-electric hybrids, which are expected to command profit margins that are higher than those of electric vehicles. He further added that hybrid sales might increase by 40 percent.

It is imperative that the electric vehicle business stand on its own. It needs to be profitable and provide a return above its cost of capital independent of emissions compliance benefits, according to Lawler.


Black Basta Claims Hyundai Europe As Its Latest Ransom Victim

Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

Continue Reading

CTN News App

CTN News App

Recent News


compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies