Without the investment, Ford would suffer a loss of $ 1.9 billion, which it said was $ 3 billion higher than the projected estimate. Automakers have reported a drop in sales during the Kovid-19 epidemic. Ford stock gained nearly 1% in after-hours trading after the news.
Ford has focused on cash collection and cost cutting during the epidemic. The automaker says it has more than $ 39 billion in cash at the end of the quarter.
“I can’t be a producer,” Ford CEO Jim Hackett said in a statement. “We gave a strong [second quarter] Taking care of customers and neighbors and assuring tomorrow, keeping each other safe. “
Ford expects it to turn a profit in the third quarter of the year, but estimates that it will cause losses for the full year.
Hackett discussed electric vehicles with analysts on a call, saying Ford did not need to make its own batteries as the supply chain accelerated.
“There’s a lot that doesn’t warrant us to transfer our capital to our factory,” he said. “There is no profit in ownership in terms of cost or sourcing.”
Ford said its North American plants finished about 95% of their pre-pandemic production levels in June. According to the company, Ford’s European plants were back in operation by May 4.