Ford losses cause abandoning a full automated driving

Ford Motor Co. reported earnings for the third quarter of 2022, Reuters said. The indicators showed an increased net loss for the company following a burden-shifting from Argo AI's self-driving business. 

Ford's actions highlight the issue of mounting pressure on automakers. This is due to the growing financial demands triggered by the shift to electric vehicles. 

So, the company recorded a net loss of $827 million for the third quarter as there has been a noncash pretax impairment in Argo AI with a value of $2.7 billion.

The US corporation announced that Argo AI’s cuts are planned. Talented engineers are likely to receive positions at Ford.

According to CEO Jim Farley, the automaker will shift its focus from self-driving solutions, developed by Argo experts, to advanced driver assistance systems (ADAS), created by Ford. With these systems being partially automated, human presence in a driving process is still considered a necessity.

The path to profitable, fully autonomous vehicles would be a distant one, as Farley noted. Their construction won’t necessarily be Ford's own. 

The corporation's revenue for the third quarter of 2022 rose to $39.4 billion. This figure is 10% higher than last year's data. Meanwhile, Ford witnessed a drop in adjusted operating profit to $1.8 billion, despite the 2021 level of $3 billion. Thus, analysts' forecasts of $1.7 billion proved to be unrealistic.