Ford stock drops 18% in 2024 amid production and quality challenges
fool.com —
Ford's stock fell 18% in 2024, contrasting with General Motors' 48% rise. The decline is attributed to Ford's ongoing production and design quality issues, leading to a record number of recalls and increased warranty costs. In the second quarter, Ford reported a $2.8 billion operating profit, down 26% from the previous year and below expectations. Warranty expenses reached about $2 billion, significantly impacting earnings. Additionally, Ford faces challenges in developing electric vehicles, projecting a $5 billion loss in its EV division for 2024. The company is also struggling in the competitive Chinese market, where new-energy vehicles dominate.