Ford’s profit dips but says US consumers still ‘resilient’
The US automaker has not seen a consumer shift away from trucks despite higher gasoline prices exacerbating cost-of-living challenges across the US.
Ford's profitability for 2027 is expected to remain similar to that of 2026, despite the company reporting a 16.3% decrease in profits for the third quarter. The automaker's revenues fell by 2% to $49.5 billion due to lower auto sales. However, Ford attributes its resilience to the persistently strong demand for trucks and large vehicles, even as gasoline prices have risen.
Ford's chief financial officer, Sherry House, described the impact of the aluminum supplier Novelis' fires in fall 2025 as "largely behind us," with costs from the incident being $1 billion less in 2026 compared to 2025. Despite higher gasoline prices contributing to the cost-of-living challenges across the US, Ford has not observed a shift away from truck purchases by consumers.
House noted that Ford's customer base tends to be higher-income individuals who are benefiting from stock market gains. However, Ford has raised its anticipated 2026 commodity headwind cost to $2.5 billion, an increase of $500 million from the previous estimate. The higher costs are attributed to metals like copper and steel, as well as logistics expenses resulting from the increase in diesel fuel prices.
House also mentioned that Ford anticipates significant commodity cost increases going into 2027, including higher semiconductor costs.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Ford’s profit dips but says US consumers still ‘resilient’ freemalaysiatoday.com
