Ford Motor Co. in Dearborn and General Motors Co. in Detroit have announced their first quarter financial results, showing a net loss of $3.1 billion in revenue year-over-year for Ford. GM, meanwhile, recorded EBIT-adjusted of $4 billion.
General Motors reported $35.9 billion in first quarter revenue. It’s EBIT-adjusted was $4 billion with an adjusted EBIT margin of 11.2 percent. GM North America’s EBIT-adjusted was $3.1 billion with an adjusted margin of 10.7 percent, and GM International generated an EBIT-adjusted of $328 million. Its China equity income came in at $234 million.
“With strong demand for our vehicles, including our dramatically redesigned Chevrolet and GMC light-duty pickups launching now, our cost discipline and the progress of our growth plan, we are reaffirming our financial guidance for the calendar year,” writes Mary Barra, chairman and CEO of GM, in a letter to shareholders.
“Launching more EVs faster is the catalyst for growth, and we are accelerating our volumes, growing to 1 million units of EV capacity in North America by the end of 2025, and expanding from there. In North America alone, we target production of 400,000 all-electric vehicles over the course of 2022 and 2023.”
Ford reported $34.5 billion in first-quarter revenue, with wholesale shipments of nearly 970,000 vehicles, down 9 percent from a year ago. The net loss of $3.1 billion was primarily attributable to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian.
Adjusted earnings before interest and taxes were $2.3 billion, with an adjusted EBIT margin of 6.7 percent. Profitability was enhanced by increased net pricing, including continued discipline in incentive spending, but more than offset by higher commodity prices, a decline in overall product shipments, and a lower mix of pickup trucks and large SUVs.
The company again ended the quarter with strong total company cash and liquidity — nearly $29 billion and $45 billion, respectively. Both of those numbers included Ford’s stake in Rivian, which was valued at $5.1 billion on March 31, down from $10.6 billion at the end of 2021.
“The appeal of these products — Bronco, Bronco Sport, Maverick, Mustang Mach-E, E-Transit, and now the F-150 Lightning — is undeniable,” says Jim Farley, CEO of Ford. “That’s translating into orders, typically with rich configurations that deliver great experiences to those customers and healthy pricing for us. Now, we’re breaking constraints wherever they exist to get more Ford vehicles — including our innovative EVs — to more customers as quickly as possible.”
In North America, Ford generated $1.6 billion in EBIT. The company said first-quarter supply disruptions limited the fundamental revenue and earnings power of the regional business.
Collectively, the company’s Europe, South America, China, and International Markets Group business units — all of which have been restructured and refocused over the past few years — produced EBIT of $300 million. Ford in Europe generated positive EBIT despite supply related lower volumes. It’s business in South America reflected the benefits of its restructuring into a lower-risk, asset-light business, achieving a third straight quarter of profitability.
In China, Ford continues to establish the Lincoln brand with buyers of luxury vehicles and as the company’s long-term profit engine in the strategically important market. The brand’s in- country customer experience and dealer network are being modernized and expanded in preparation for Lincoln’s all-electric future.
