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The decline in Ford sales is due to autonomous investment in vehicles

ford (F) announced net income of $ 1.1 billion in the second three months of the year, aided by a profit of $ 3.5 billion from VW’s investment. Ford and VW now have equal stakes in Argo AI, which has said it will implement its self-driving technology in 2022.
US car sales simply had their worst quarter since the Great Recession

Without the investment, Ford would lose $ 1.9 billion, which it said was more than $ 3 billion better than forecast. Carmakers report declining sales during the Covid-19 pandemic. Ford stocks rose nearly 1% in after-hours trading after the news.

Ford has focused on saving cash and cutting costs during the pandemic. The carmaker said it had more than $ 39 billion in cash at the end of the quarter.

“I couldn’t be more proud,” Ford CEO Jim Hackett said in a statement. “We delivered strong [second quarter] by keeping each other safe, caring for our customers and neighbors and guaranteeing tomorrow. “

Ford expects to make a profit in the third quarter of the year, but expects to report a loss for the whole year.

Hackett discussed electric vehicles during a conversation with analysts and said Ford did not need to build its own batteries as the supply chain grew.

“There is a lot out there that does not guarantee us to migrate our capital to own our own factory,” he said. “There is no cost advantage in terms of costs or supplies.”

Ford said its North American plants were completed in June at about 95 percent of pre-pandemic production. Ford’s European power plants are back in operation by May 4, according to the company.

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