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Ford Truck Profits Hide Need for More Cuts, Morgan Stanley Says

  • Automaker may need to shed 23,000 more workers, Jonas writes
  • F-Series pickup pretax profits reached $10 billion last year
Ford Holds Event At Rouge Plant
Photographer: Sean Proctor/Bloomberg
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Ford Motor Co. may need to cut more than the recently announced 7,000 salaried workers to make up for slowing auto sales, a situation that’s not readily apparent because its F-Series pickup helped “cover industry blemishes” with $10 billion in pretax earnings last year, Morgan Stanley says.

To make up for an estimated 5% drop in global revenue as China ceases to be an engine of growth, Ford would need to cut another 23,000 salaried workers, auto analyst Adam Jonas wrote in note to investors Tuesday. His analysis assumes no additional cost reductions, while Ford has said it is targeting $25.5 billion in cuts by 2022.