Ford has posted a $2bn loss for 2022 (2021 net income was $17.9bn) and said that it should have done better. For the fourth quarter of 2022 Ford posted net income of $1.3bn, which compares with net income of $12.3bn in the same quarter of 2021.

In a downbeat statement, Ford admitted its fourth-quarter and full-year 2022 operating results were below its expectations. “We should have done much better last year,” said CEO Jim Farley. “We left about $2 billion in profits on the table that were within our control, and we’re going to correct that with improved execution and performance.”

The results, Ford said, were below Ford’s expectations, attributable, in part, to execution issues in an environment with supply chain and production instability, resulting in higher costs and lower-than-planned volumes.

After the disappointment of 2022, Ford said it is optimistic about what’s possible now with three distinct, customer-focused business segments: Ford Blue for iconic gas and hybrid vehicles, Ford Model e for breakthrough connected electric vehicles, and Ford Pro for products and services that help commercial customers transform and grow their organizations.

“I’m excited about 2023, which is pivotal for us,” said Farley. “We’ve got clarity and ambition with the Ford+ plan, a strong team carrying it out, and a lineup of great products and customer experiences that’s getting even better.”

In 2023, Ford currently expects to earn $9bn-$11bn in adjusted EBIT, presuming seasonally adjusted annual rates of about 15 million vehicles in the US and about 13 million in Europe.

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The company said it expects 2023 headwinds to include mild recession in the US and moderate recession in Europe with higher industry-wide customer incentives, as vehicle supply-and-demand rebalances.

However, it also said that tailwinds would include supply chain improvements and higher industry volumes; launch of the all-new Super Duty truck; and lower costs of goods sold, including for materials, commodities, logistics and other parts of the industrial platform.