Ford Made $4 Billion Last Year Despite Warning UAW Strike Could ‘Bankrupt’ It
Good morning! It’s Wednesday, February 7, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
Top Gear America Sneak Peek: Mini Cooper JCW GP
1st Gear: Ford’s 2023 Revenue Hits $176.2 Billion
After Toyota blew estimates out the water with its earnings announcement yesterday, Ford wants onto the high rollers table with its latest financial results. Despite struggling through a year plagued with recalls, production slowdowns and United Auto Workers strikes, the Detroit-based automaker saw its profits rise last year. A lot.
According to the Detroit Free Press, the Mustang maker posted revenue for the full year of $176.2 billion — a whopping $18 billion more than it managed 12 months previously. Of that, $46 billion came in the fourth quarter of the year, when Ford was struggling through one of the largest auto workers strikes in recent memory. As the Free Press reports:
Ford Motor Co. on Tuesday reported 2023 adjusted earnings before interest and taxes (EBIT) of $10.4 billion, compared with $10.4 billion in 2022 and $10 billion in 2021. For the fourth quarter alone, Ford reported EBIT of $1.1 billion compared with $2.6 billion a year ago.
For 2023, the Dearborn automaker reported revenues of $176.2 billion, up from $158 billion in 2022. For the fourth quarter, Ford reported revenues of $46 billion compared with $44 billion a year ago.
The Free Press puts the cost of the UAW strike at Ford at around $1.3 billion after it ran for a month last fall. Despite that hefty cost, full-year income for the Blue Oval hit $4.3 billion, which marked a massive improvement on the $2 billion loss Ford posted in 2022.
However, the news wasn’t as rosy for Ford’s electric division. The company’s Model E unit posted a loss of $4.7 billion in 2023, but claimed it is working to improve production quality and cut warranty costs in an attempt to turn this figure around.
2nd Gear: Cruise Offers $112,000 To Settle Crash Inquiry
After a series of high-profile crashes, collisions and holdups on the streets of California, self-driving car company Cruise is off the road and facing inquiries and investigations from all sides. Now, the GM-backed company has raised its offer to settle a case brought by California courts, which would mark its first hurdle on the long journey back to the highway.
According to a report from Reuters, the autonomous taxi firm has offered to pay $112,500 to settle an investigation into its disclosure of details relating to a crash involving one of its self-driving cars. Reuters reports:
An administrative judge questioned why Cruise deserves “discounts” to the penalty, and a Cruise representative offered to pay $112,500 to settle the case, up from a previously proposed $75,000 at a hearing by the California Public Utilities Commission (CPUC).
The judge grilled officials at Cruise and Quinn Emmanuel over the incident, after the CPUC in December accused Cruise of misleading the agency and the public “through omission” on the extent and seriousness of the accident.
The investigation was opened after a Cruise car hit a pedestrian in October. The victim, who had been pushed into the path of the Cruise car by another vehicle, was dragged 20 feet by the self-driving car. In the aftermath, it was claimed that Cruise officials omitted information, such as the fact that the self-driving car “engaged in the pullover maneuver,” which Reuters reports resulted in the victim being dragged along the road.
As well as the hefty payout that Cruise is offering to settle the case, the company also said that it will boost reporting of collisions to the commission. Call me old fashioned, but I reckon it’s better to have less collisions instead of just getting better at reporting the ones you do have, but it’s the little wins I guess.
3rd Gear: Driverless Waymo Cab Hits San Francisco Cyclist
On the subject of driverless car crashes, a Waymo cab in San Francisco has collided with a cyclist. The autonomous taxi reportedly hit the cyclist as they emerged from behind a truck, reports Automotive News.
The crash between the self-driving car and the bike occurred on Tuesday. Automotive News reports that the self-driving car broke heavily to try and avoid the crash, but it wasn’t enough to prevent it from hitting the bike. The site reports:
Waymo said its vehicle was at a complete stop at a four-way intersection when a large truck turned into the intersection. At its turn to proceed, the Waymo car moved forward.
However, the cyclist was behind the truck and not visible as they crossed into the Waymo vehicle’s path.
When the cyclist was fully visible, the Waymo’s vehicle braked heavily, but was not able to avoid the collision, the company said.
After the crash, the cyclist didn’t need to go to hospital and only “minor scratches” were reported. The causes of the crash are now being investigated by the San Francisco Police Department.
4th Gear: Mini Kills The Clubman
Prepare your eulogies, get out the commemorative placards and be ready to raise a glass in remembrance, Mini has killed off the Clubman. Mini has built it’s last barn-door-touting wagon and isn’t likely to replace it with a new generation, not even something running on Mini’s new battery-powered platform.
This heartbreaking news was brought to our attention by British outlet Autocar, which reports that the weirdly lovable station wagon will die after 17 years in production in Oxford, UK. Autocar reports:
The Clubman first went on sale in 2007 as an estate-bodied version of the Mini hatchback, complete with a novel vertically split tailgate.
It was assembled at the brand’s Plant Oxford facility in Cowley since it first went on sale as part of Mini’s revival of its entire range.
It has now bowed out to make space for the Aceman crossover and petrol versions of the new Cooper (in three-door, five-door and convertible forms).
The Aceman, which hasn’t yet been fully revealed by Mini owner BMW, will be a fully electric crossover that’s set to break cover at the Auto China show on April 24’/;;;. But before we all get too excited about what’s to come, let’s just take a moment to respect the weirdness of the Mini Clubman. Even if it did come with some of the worst taillights ever.
