After losing $2 billion during the first quarter, Ford Motor Company officials on Tuesday said they expect second quarter losses to be even worse — to the tune of $5 billion.
Despite the massive loss of revenue, Ford’s “cash is sufficient to take us through the end of the year, even with no additional vehicle wholesales or financing actions,” says Chief Financial Officer Tim Stone. Nevertheless, the news caused Ford shares to drop 6 percent in after-hours trading.
The losses come in spite of efforts by the auto manufacturer to cut costs as people have all but stopped buying vehicles since the coronavirus pandemic began. In the past month, the company has cut salaries of executives and laborers, and pulled the plug on several projects in an effort to stay afloat. However, as of Tuesday, Ford’s market value was estimated to be $20.6 billion — down from $35.1 billion just four days ago.