Ford is doubling down on electric vehicles, even if it means short-term losses. The company is betting that increased production and innovation will pay off in the long run. ElectricCars Ford
, the current leader in the EV market, it’s going to be ramping up production, resulting in some of the greater losses. For example, Ford has several new factories in the works, including two battery-cell plants in Kentucky and one in Tennessee, plus a new space focused on making electric trucks. That’s all in service of reaching an annualized production rate of 2 million EVs and an operating profit margin of 8 percent by the end of 2026.
The EV announcement came as part of a larger restructuring in the way Ford reports it finances. Previously, profits and losses were divided by region, but now the marque will divvy up numbers based on business unit: Model E , Ford Blue , and Ford Pro . While EV losses may be mounting, the other Ford sectors have seen increased profits in recent years. Ford Blue tallied operating profits of $6.8 billion last year, more than double 2021 numbers. And Ford Pro clocked $3.2 billion in operating profits in 2022. In total, the automaker is forecasting overall operating profits of $9 billion to $11 billion this year, even with the EV losses.
Last year, Ford CEO Jim Farley said the marque had looked into spinning off at least one of its business units, but ultimately decided against doing so. Sounds like that’ll pay off in the future, at least as far as Ford’s bottom line is concerned.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ford Expects Model e EV Unit To Post $3 Billion Loss This YearFord Model e's loss forecasted for 2023 is 43% higher than the EV unit's $2.1 billion loss posted last year amid increased investment in production, batteries.
Read more »
Ford to lose $3B on EV 'startup' in 2023, turn profit on traditional vehiclesFord's expects its electric vehicle division to post a $3 billion loss in 2023 as it ramps up production while its conventional vehicle operations are expected to turn a profit.
Read more »
Ford to lose $3 billion from EV sales to consumers this year | CNN BusinessFord said it will lose $3 billion on its sales of electric vehicles to consumers this year, but it still expects to hit the profit targets it set for this year of between $9 billion and $11 billion.
Read more »
Ford Says It Will Lose $3 Billion on EVs This Year, but Sales Are RisingThe company forecasts increased profits from its internal-combustion and commercial business, while losses from EV sales continue to grow.
Read more »
Biden risks facing a lose-lose scenario as TikTok CEO prepares to testifyConcerns about TikTok becoming a threat to national security have been fueled by bipartisan support in Congress.
Read more »
Ford sees $3 billion pretax loss in its EV business this yearFord Motor Co expects its electric vehicle business unit to lose $3 billion this year, but remains on track to achieve a pretax margin of 8% by late 2026, the company said.
Read more »