Ford Motors warns for lower earnings in 2017

Ford has warned that the financial performance next year will be negative compared to this year, due to increased investments related to electrification, autonomous cars and other new areas.

The company said it expects core business of the company to correct its profits before taxes, but the overall results of the company will decrease in 2017 compared with 2016. Company's shares fell 1.1 percent before the opening bell in US markets.

Last week, Ford lowered its forecast for earnings in 2016 of $ 10.8 billion to $ 10.8. This is most likely due to a recall of large numbers of cars back to the factories due to a defect in the locks on the doors of more than 1.5 million automobile. Ford has repeatedly warned in recent weeks that it thinks the US auto industry has reached a peak and that the second half of this year will represent a downturn for the industry as a whole.

Ford said today it planned to achieve cost efficiencies averaging $3bn annually between 2016 and 2018 to “offset the vast majority of costs being added to strengthen Ford’s business” apart from price-related design costs, regulatory costs and the cost of investment in new opportunities, especially electrification.