Hello Jalopnik readers.
I'm Adam Milt, and this is the Big Story.
Ford Motor Company has reported that despite revenue being up and net income higher,
their 2017 4th quarter pre-tax profits were down 19% from last year's.
Even though that's a big drop, Ford still made $1.9 billion and doesn't seem too bothered
about the decline.
Erik Shilling, news editor for Jalopnik, reports that it's
"mostly because the prices for raw materials have been rising.
Ford opted to make its trucks with aluminum bodies, which made them several hundred pounds
lighter than they would be, but also cost the company more money since aluminum is more
expensive to make and buy than steel."
Ford went aluminum with the F-150 for this generation, and was the first major American
carmaker to switch away from making its super profitable pickup out of simpler, cheaper steel.
Shilling goes on to say that he doesn't "think a company that made $8.4 billion
last year has too many problems with the fitness of its business—though shareholders are ever
hungry, and boards and CEOs ever eager to feed that hunger."
It will be interesting to see if all of this pays off for Ford.
You never know if gas prices may spike again, and Ford will look like a fuel-efficient hero.
Or if they'll stay low and the company's more conservative rivals will rake in more cash.
For Jalopnik, this is your Big Story.
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