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It’s just a few days to the big game but the plays are already being called as Ford discusses its profits and strategies to keep them where they are. We also talk about potential layoffs at Tesla, as well as a $2M bet with customers from one Kansas Dealership.
- Ford is projecting an $11 billion adjusted operating profit for 2024, surpassing analyst expectations and showcasing resilience despite large EV losses.
- The company's "Pro" business, primarily sales to companies, drives profitability with expected gains while its EV division Ford e posed a $4.7 billion loss in 2023, with anticipated deeper losses, yet investments in EV technology will continue
- "The ultimate competition is going to be the affordable Tesla and the Chinese OEMs," says CEO Jim Farley, emphasizing the ongoing commitment to EVs despite financial challenges.
- Without EV sales, Ford's adjusted operating profit could be 50% higher, showcasing the significant financial impact of their commitment to electric vehicle technology despite current losses.
- Tesla has asked managers to make a "binary assessment" of their deputies' roles, signaling a round of layoffs through a focused evaluation of team members' criticality.
- Growth in headcount showed a significant slow down, with an increase of only 12,000 in 2023, down from 29,000 in 2022, suggesting a shift towards operational efficiency.
- Employee morale faced challenges, highlighted by delayed stock compensation and unsatisfactory annual pay increases, reflecting broader concerns over compensation practices.
- Amidst cost-cutting efforts to support vehicle price cuts, Tesla's approach to streamlining its workforce and adjusting compensation has raised concerns about job security and company culture.
- SIDE STORY: Tesla's sales in South Korea dropped to just one vehicle in January, highlighting significant market challenges including consumer inflation concerns and a critical shortage of fast chargers.
- Overall EV registrations in South Korea plummeted by 80%, with safety concerns about battery fires further dampening demand
- A Kansas City Chiefs' Super Bowl win could mean big wins for some Mitsubishi buyers as Family Mitsubishi in Wichita, Kansas, is offering a unique Super Bowl promotion, promising full refunds on vehicle purchases if the Chiefs win under specific conditions.
- Customers who purchased a new Mitsubishi between August 16 and Oct 15 are eligible
- Conditions for the refund include a Chiefs win, a touchdown by Patrick Mahomes, and the team's final score ending in zero, adding an exciting twist to the Super Bowl anticipation.
Over 60 customers could benefit, with nearly $2 million at stake, leveraging football fever to boost loyalty and draw traffic amidst a challenging market
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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