(Bloomberg) -- Ford Motor Co. said it expects “total company results” to decline next year as the automaker increases investment in electric vehicles and new opportunities to strengthen its businesses, before rising again in 2018.
The automaker is investing $4.5 billion as it works to introduce 13 new electric vehicles, accounting for 40 percent of its lineup, by 2020, the company said in a statement Tuesday ahead of its investor day presentations. The Dearborn, Michigan-based automaker earlier this month lowered its 2016 pretax profit forecast last week to $10.2 billion from at least $10.8 billion because of the cost of an expanded recall of faulty door latches.
Executive Chairman Bill Ford said yesterday that some investors have traded down the company's shares because the U.S. auto market has peaked and the profit records appear to be over. Others are uncertain about how the 113-year-old automaker will fare against new competition such as Alphabet Inc.'s Google self-driving car and other Silicon Valley technology companies moving into mobility.
To contact the reporters on this story: Kevin Miller in Chicago at kmiller@bloomberg.net, Keith Naughton in Southfield, Michigan at knaughton3@bloomberg.net. To contact the editors responsible for this story: Kevin Miller at kmiller@bloomberg.net.
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