Ford 2017 results likely to take hit from investment in new technology

CEO of Ford Mark Fields admitted that the United States car manufacturer may suffer disappointing results in 2017, as the company invests heavily in new technology such as autonomous driving.

However, Fields also predicted that 2018 would see a full recovery as Ford's cost-cutting programme put in place this year nears its conclusion.

In a statement prepared ahead of an analysts' meeting in Michigan, the company also mentioned that it expects "core business pre-adjusted tax profit" to rise every year between 2016 and 2018.

"The decline in 2017 is the result of increasing investments and costs for emerging opportunities," Ford said in a statement.

The carmaker has made repeated claims that it believes the car inustry has hit its peak, and will experience a downturn in the second half of the year.

Ford said it planned to obtain average cost efficiencies of $3bn per year over the three-year period, especially as it increases spending on price-related design costs, regulatory costs and costs associated with the drive towards electric and self-driving cars.

Chief Financial Officer Bob Shanks said that in the long term Ford's outlook is still strong.

"We expect Ford's performance to be strong through 2018 - with our core business improving, allowing us to invest in the emerging opportunities that will ensure our future success," he said in a prepared statement.