Latest news with #FordMotorCo.
The Star
5 hours ago
- Automotive
- The Star
Ford posts Q2 results with net loss, revenue growth
NEW YORK, July 30 (Xinhua) -- Ford Motor Co. on Wednesday released its second-quarter financial results, showing a net loss of 36 million U.S. dollars, attributable to special charges related to a field service action and expenses related to a previously announced cancellation of an electric vehicle program. In the period, the U.S. automaker's revenue came in at 50.2 billion dollars, up 5 percent year on year. The adjusted earnings before interest and taxes (EBIT) were 2.1 billion dollars, including 800 million dollars in adverse net tariff-related impacts. Ford's cash flow from operations in the second quarter was 6.3 billion dollars. At quarter end, it had 28.4 billion dollars in cash and 46.6 billion dollars in liquidity. By segment, Ford Pro generated 2.3 billion in EBIT with a margin of 12.3 percent on 18.8 billion dollars in revenue in the second quarter. Ford Model e reported a second-quarter EBIT loss of 1.3 billion dollars, higher than the loss for the same period last year. Ford Blue reported 661 million dollars in EBIT in the second quarter, reflecting profitable market share gains, higher net pricing and cost improvement. Segment revenue declined 3 percent to 25.8 billion dollars. "Our second-quarter performance shows the power of the Ford+ plan and continued execution on cost and quality," Ford president and CEO Jim Farley said in a statement released Wednesday.
Winnipeg Free Press
5 days ago
- Automotive
- Winnipeg Free Press
Automakers are going big on in-car subscriptions. Are customers buying it?
Consumers don't want to pay for it. Automakers are still pushing hard. In-car subscriptions have become a growing obsession for many automakers which see strong revenue potential from recurring customer payments. But it appears that initial attempts to paywall built-in hardware and software features, such as cameras, sensors or navigation perks, haven't been too successful, with few drivers willing to take on yet another monthly bill. That has brought automakers to their next challenge: convincing customers to subscribe. An S&P Global Mobility survey this month found the number of respondents who were willing to pay for connected services in their vehicle dropped to 68 per cent this year, compared with 86 per cent in 2024. 'Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use,' the report said. Drivers now have a range of options to subscribe to: semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle assistance and access to Wi-Fi — all at different price tiers. However, steep subscription costs on top of sticker prices of new vehicles remain one of the biggest barriers for many consumers. To get past that, some automakers are offering temporary complementary access to connective services in hopes of gaining loyal customers. Ford Motor Co.'s semi-autonomous driving feature costs between $650 and $900 per year after a 90-day free trial, for example. General Motors Co.'s OnStar subscription can be as high as $39.99 a month after a free trial, according to its website. Automakers which are known for their affordable prices have also joined the race for subscription-based connected services. Kia Corp., for example, has a three-tier subscription offering for owners following a three-year free trial period, which offers services such as a charging station locator, digital key access via smartphone and roadside emergency services. The subscription model is in its evolution phase, said Stephanie Brinley, associate director of autointelligence at S&P Global Mobility. 'We're trying to figure out what consumers are willing to pay for, how much they're willing to, (and) how they want it bundled,' she said. Despite the initial resistance, automakers haven't given up yet. Instead, they're rolling out brand new technology and features in the hopes of enticing drivers to pay for subscriptions. 'They're pivoting to that new tech,' said Daniel Ross, senior manager of industry insights with Canadian Black Book. 'It's more on what's new and what they've never had before.' Ross said as newer technology comes out, there will be more opportunities for automakers to release new generations of cars with updated software. And that's one of the pitches for customers to subscribe, he added. 'If you want that type of technology that's advanced, that's the newest age, that's something you can tell your friends about, this is the way you pay for it,' Ross said. Brinley said automakers are building a road map to help scale this in-car technology and these features to make it more affordable for consumers in the long run — all while keeping personalization at its core. 'Once you have the platform and the service developed, the margin is really high,' Brinley said. 'The fact that it's connected is not really the element that consumers get excited about,' she said. 'It's what does that connectivity do for you as an owner?' Some customers may find value in GM's OnStar safety and security package that alerts for help during a crash, while others may subscribe to Ford's self-driving feature for a month-long road trip. 'The appeal of a feature is that it makes driving easier,' she said. Brinley said automakers have started to talk about their revenue expectations from subscription-based services more concretely. That 'means they're making progress,' she said. On recent earnings calls, GM projected revenue from its hands-free feature, Super Cruise, will be more than $200 million in 2025 and is expected to more than double in 2026. Meanwhile, Ford said the number of its vehicles equipped with the hands-free driving feature, BlueCruise, have more than doubled in the last year to just under 700,000 units. 'You can see our relationship with our customers no longer ends the point of sale or financing. We're starting to build lasting relationships and creating new avenues for reoccurring growth at Ford,' CEO Jim Farley told analysts during its fourth-quarter earnings call. Ross said automakers are banking on the trickle-down effect of the connected services subscription. Often, features first introduced to high-end customers gradually filter their way down to mainstream customers, who are looking for affordable and budget-conscious options, he explained. Monday Mornings The latest local business news and a lookahead to the coming week. Brinley said the subscription model is still in its early stages. As it progresses, so will consumer expectations. 'If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there,' Brinley said. As consumers get more used to connectivity, their expectation of what comes with a vehicle and what they're going to pay will also evolve, she said. 'There's probably going to be a lot of flexibility over time in how people choose to consume that,' Brinley said. This report by The Canadian Press was first published July 25, 2025.
Hamilton Spectator
5 days ago
- Automotive
- Hamilton Spectator
Automakers are going big on in-car subscriptions. Are customers buying it?
Consumers don't want to pay for it. Automakers are still pushing hard. In-car subscriptions have become a growing obsession for many automakers which see strong revenue potential from recurring customer payments. But it appears that initial attempts to paywall built-in hardware and software features, such as cameras, sensors or navigation perks, haven't been too successful, with few drivers willing to take on yet another monthly bill. That has brought automakers to their next challenge: convincing customers to subscribe. An S&P Global Mobility survey this month found the number of respondents who were willing to pay for connected services in their vehicle dropped to 68 per cent this year, compared with 86 per cent in 2024. 'Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use,' the report said. Drivers now have a range of options to subscribe to: semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle assistance and access to Wi-Fi — all at different price tiers. However, steep subscription costs on top of sticker prices of new vehicles remain one of the biggest barriers for many consumers. To get past that, some automakers are offering temporary complementary access to connective services in hopes of gaining loyal customers. Ford Motor Co.'s semi-autonomous driving feature costs between $650 and $900 per year after a 90-day free trial, for example. General Motors Co.'s OnStar subscription can be as high as $39.99 a month after a free trial, according to its website. Automakers which are known for their affordable prices have also joined the race for subscription-based connected services. Kia Corp., for example, has a three-tier subscription offering for owners following a three-year free trial period, which offers services such as a charging station locator, digital key access via smartphone and roadside emergency services. The subscription model is in its evolution phase, said Stephanie Brinley, associate director of autointelligence at S&P Global Mobility. 'We're trying to figure out what consumers are willing to pay for, how much they're willing to, (and) how they want it bundled,' she said. Despite the initial resistance, automakers haven't given up yet. Instead, they're rolling out brand new technology and features in the hopes of enticing drivers to pay for subscriptions. 'They're pivoting to that new tech,' said Daniel Ross, senior manager of industry insights with Canadian Black Book. 'It's more on what's new and what they've never had before.' Ross said as newer technology comes out, there will be more opportunities for automakers to release new generations of cars with updated software. And that's one of the pitches for customers to subscribe, he added. 'If you want that type of technology that's advanced, that's the newest age, that's something you can tell your friends about, this is the way you pay for it,' Ross said. Brinley said automakers are building a road map to help scale this in-car technology and these features to make it more affordable for consumers in the long run — all while keeping personalization at its core. 'Once you have the platform and the service developed, the margin is really high,' Brinley said. 'The fact that it's connected is not really the element that consumers get excited about,' she said. 'It's what does that connectivity do for you as an owner?' Some customers may find value in GM's OnStar safety and security package that alerts for help during a crash, while others may subscribe to Ford's self-driving feature for a month-long road trip. 'The appeal of a feature is that it makes driving easier,' she said. Brinley said automakers have started to talk about their revenue expectations from subscription-based services more concretely. That 'means they're making progress,' she said. On recent earnings calls, GM projected revenue from its hands-free feature, Super Cruise, will be more than $200 million in 2025 and is expected to more than double in 2026. Meanwhile, Ford said the number of its vehicles equipped with the hands-free driving feature, BlueCruise, have more than doubled in the last year to just under 700,000 units. 'You can see our relationship with our customers no longer ends the point of sale or financing. We're starting to build lasting relationships and creating new avenues for reoccurring growth at Ford,' CEO Jim Farley told analysts during its fourth-quarter earnings call. Ross said automakers are banking on the trickle-down effect of the connected services subscription. Often, features first introduced to high-end customers gradually filter their way down to mainstream customers, who are looking for affordable and budget-conscious options, he explained. Brinley said the subscription model is still in its early stages. As it progresses, so will consumer expectations. 'If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there,' Brinley said. As consumers get more used to connectivity, their expectation of what comes with a vehicle and what they're going to pay will also evolve, she said. 'There's probably going to be a lot of flexibility over time in how people choose to consume that,' Brinley said. This report by The Canadian Press was first published July 25, 2025.
Toronto Star
19-07-2025
- Automotive
- Toronto Star
The inside scoop on how the '78 Calgary Stampede set the final stage for Ford Motor's Windsor plant
The final setting to conclude months of negotiations between those two great Canadian institutions of long-standing, federal-provincial feuding and government-business wariness, was on a uniquely Canadian stage: the rip-roaring Calgary Stampede. The topic was not horses, it was money and jobs. In 1978, U.S.-based Ford Motor Co. was thinking about building a V6-engine plant in Windsor, Ont. But the company wanted some public money, $30 million, said Roy Bennett, Ford Motor Co. of Canada president. The injection would offset a variety of higher Canadian costs compared with expanding an existing Ford engine plant in Lima, Ohio, 150 kilometres across the border from Windsor. Opinion articles are based on the author's interpretations and judgments of facts, data and events. More details
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Business Standard
18-07-2025
- Business
- Business Standard
China spy agency accuses foreign agents of smuggling rare earth materials
China's spy agency has accused overseas intelligence agencies of stealing controlled rare earth materials, reiterating its intent to curb smuggling even as Beijing agrees to review applications to export the vital industrial resource after trade talks with the US. Without naming any country, the Chinese Ministry of State Security accused foreign entities of orchestrating the trafficking of these items, which Beijing sees as a strategic asset and has used as a bargaining chip in tariff negotiations with Washington. 'In recent years, foreign espionage and intelligence agencies and their agents have attempted to collude with and incite unlawful people in the country to steal our rare earth-related items by means of mail delivery, posing a serious danger to our national security,' the ministry said in a WeChat post Friday. China leveraged its dominance in producing these metals and rare earth magnets in the trade war with the US, which relies on Chinese supply to make a wide range of products including electric vehicles. Ford Motor Co. had to cut output at one of its plants after Beijing tightened export controls, and the curbs have deepened tensions with the European Union, which similarly depends on exports from China. The security ministry claimed to have foiled an attempt by an unnamed country to illicitly acquire rare earths for stockpiling. This involved a contractor mislabeling parcels as 'not originally made in China' and misrepresenting product content and ingredients, according to the post. The MSS also detailed other alleged smuggling tactics, such as hiding rare earth powders in ceramic tile ingredients or disguising them in water bottles labeled as 'machinery parts' for export. The ministry urged citizens to report suspicious activities related to rare earth resources. China and the US last month confirmed a deal to suspend drastic tariffs after Beijing vowed to process export licenses and the US agreed to lift its own controls on technology including some advanced AI chips. Signs of easing tensions have raised the chance of a broader deal and a meeting between President Donald Trump and Chinese leader Xi Jinping this year.
