Ford Gains Profits in Q1 and Announces Major Restructuring 

Ford has announced a new $1.5-$2 billion restructuring plan to help its electric vehicle (EV) business, Blue Oval, become profitable as soon as possible, according to a foreign media report.
Ford is already ahead of its traditional rivals and ahead of the curve when it comes to adopting, introducing and developing EVs. Now, Blue Oval wants to double down on its efforts to become profitable with EVs as soon as possible and has launched a new financial plan for a major restructuring of the business in the coming months and years.
Ford announced this new restructuring plan in a filing with the US Securities and Exchange Commission (SEC), which says the company expects to spend $1.5-$2 billion on the restructuring, specifically, Ford will exit loss-making regions and cut jobs as well as other changes being implemented.
Last year, Ford first announced an overhaul of its business structure as a starting point for the creation of three business units, one for EVs, one for internal combustion engine vehicles and one for commercial products. Since then, Ford has also issued plans to revamp its dealer network, which will involve significant job cuts and a move to an online ordering system with virtually no inventory in dealership shops.
In addition, Ford has announced a new workforce structure that the company hopes to reduce costs and increase total production, and the plan will move engineering staff from Asia and Europe to the United States. Ford also has withdrawn from unprofitable markets such as India in order to further focus its efforts on the best-performing regions.
Despite many difficulties and changes, Ford's first-quarter financials exceeded investor expectations. The company reported Q1 total revenue of $41.5 billion, operating profit of $3.4 billion and earnings per share of $0.63. According to Barrons, this far exceeded analysts' expectations for its $39.2 billion in total revenue, $2.5 billion in profit, and $0.38 in earnings per share.
Compared to rivals like GM and Stellantis, Ford's boldness puts it on track to become a leader in the EV sector. In its pursuit of profitability, it is hoped that Ford will become a model of success for other automakers making the transition to EVs.