Ford faces risks from lower-than-anticipated EV adoption, pricing pressures, and potential supplier disruptions. The company's production, supply chain, and vehicle quality are vulnerable to defects, recalls, and labor issues. Geopolitical events, trade policies, and market volatility pose risks to sales volume and pricing. Ford Credit faces risks of higher-than-expected credit losses, lower-than-anticipated lease residual values, and disruptions in capital markets. Pension and OPEB liabilities, litigation, and regulatory changes also present financial risks.
Financial Upside
Ford anticipates higher revenue and adjusted EBIT, driven by higher Ford Credit and Ford Pro EBIT. The company projects $7.5-$8.5 billion in adjusted free cash flow and $10 billion in adjusted EBIT for 2024. Ford Pro segment anticipates strong growth and pricing strength. Ford Credit expects robust access to capital markets and increased liquidity. Favorable market factors and cost reductions are also potential upsides.
