23 New Ford Models Worldwide to Impact 2014 Profit Margin
With a monumentally successful 2013 almost completely in the bag, Ford is already looking ahead to 2014 with determination and optimism. Despite all the success the automaker expects to follow up on, it is certain of one thing: profits will not be nearly as impressive because of the cost involved in launching 23 new Ford models worldwide—a record—and continuing its investment in new factories and technologies.
According to Forbes, Ford projects that 2014’s profit margin should be somewhere in the neighborhood of $7 to $8 billion, which would be a 6 to 8 percent decrease from 2013’s anticipated $8.5 billion pre-tax profit. Somehow, we think Ford still won’t be going hungry any time soon.
Furthermore, Forbes quotes Buckingham Research Group analyst, Joseph Amaturo, as telling investors the news of the lowered profit margins ahead of the likely departure of current CEO, Alan Mulally, who has been long rumored to be taking over for Steve Ballmer in the same position at Microsoft.
According to Ford CFO, Robert Shanks, the automaker is looking to 2014 as “a critical building block” for future growth, saying: “This is our most ambitious launch plan ever, as we continue to implement our One Ford plan. In 2014, we are investing across the world to support next year’s launches, but also to drive profitable growth beyond 2014 as we serve more customers in more markets and in more segments.”
In addition to the launch of the 2015 Ford Mustang, 2014 will see further integration of Ford’s virtual lab technology, which increases global cooperation between assembly facilities. For more information on what’s on the horizon for Ford in 2014, including more information on the 23 new Ford models on the slate, check back in with us here at The News Wheel!