Ford Motor Company on Wednesday said its pre-tax profit would decline for a second straight year in 2017 as the company invests heavily in electrified and driverless cars But the company said earnings would improve again in 2018 on plans to achieve $3 billion in annual savings to help offset design and regulatory costs.
The company estimates that 2016 results will be $10.2 billion, 5.5 percent lower than last year's record 10.8 billion.
The news comes a week after the company announced an expanded $640 million recall to replace faulty door latches on an additional 1.5 million cars.
Ford did not give a precise figure for how much more profits could fall in 2017.
"The decline in 2017 is the result of increasing investments and costs for emerging opportunities," the company said in a statement.
The company plans to invest $4.5 billion in developing 13 electrified cars, representing 40 percent of its line-up, for release by 2020, with a high-volume, fully autonomous car available for ride-sharing by the following year.
Ford reported a 5 percent drop in monthly sales for August and said in July that a cooling US auto boom could affect 2016 profits.
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