Categories: Social Responsibility

Ford Reports Significant Revenue Drop Due to Warranty Issues

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DETROIT — Ford Motor Company fell significantly short of Wall Street expectations for second-quarter earnings, despite beating revenue forecasts, as long-running warranty issues plague the automaker.

Here’s how the company performed against analyst estimates reviewed by LSEG:

  1. Earnings per share: 47 cents adjusted vs. 68 cents adjusted expected
  2. Automotive revenue: $44.81 billion vs. $44.02 billion forecast

Ford shares are up about 15% this year as prices in the auto sector have remained more resilient than expected.

However, as the industry-wide shift to electric vehicles proceeds more slowly than expected, the automaker has adjusted its production plans, focusing less on fully electric vehicles and more on hybrids.

Most recently, Ford announced last week that it plans to expand production of its large Super Duty trucks at a Canadian plant that was previously slated to become a hub for all-electric vehicles.

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Anna Edwards

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