Shares of Ford Motor Co. (NYSE: F) stayed down almost 3% in afternoon hours on Tuesday after the company’s credit rating was downgraded by Moody’s to junk status. The agency said Ford was not well-positioned to undertake its $11 billion restructuring due to its weak performance.
During its most recent quarter, Ford reported an 86% dip in profits due to its global redesign and restructuring activities. Lower wholesale units and a decline in market share pulled down revenue by 0.2%. As part of its restructuring activities, Ford has trimmed its product portfolio, closed several factories and cut jobs, especially in Europe.
Meanwhile, at the Frankfurt Motor Show in Germany, Ford unveiled its latest line-up of electric vehicles, which are expected to drive sales that surpass the conventional petrol and diesel models by the end of 2022 in Europe. The line-up includes the new Kuga plug-in hybrid, the Explorer plug-in hybrid, the new Puma EcoBoost Hybrid and the Ford Mondeo Hybrid.
Ford believes electrified powertrains will account for more than half of the company’s passenger vehicle sales by the end of 2022. By this time, the company expects to sell 1 million electrified passenger vehicles.
Ford will partner with six energy suppliers across Europe to provide home charging wall box installation services and green energy tariffs for plug-in hybrid customers. The company will work with Centrica to offer services in the UK and Ireland.
Ford will also launch a new smartphone and tablet application that will help plug-in hybrid vehicle owners to easily locate, navigate to and pay for charging.