In the mad dash to pursue all things electric for the sake of climate change, Ford Motors has invested heavily in the production of electric vehicles.
So far, things are not going according to plan.
Ford is losing billions on this in 2023 and it’s only March.
The Associated Press reports:
Ford says EV unit losing billions, should be seen as startup
Ford Motor Co.’s electric vehicle business has lost $3 billion before taxes during the past two years and will lose a similar amount this year as the company invests heavily in the new technology.
The figures were released Thursday as Ford rolled out a new way of reporting financial results. The new business structure separates electric vehicles, the profitable internal combustion and commercial vehicle operations into three operating units.
Company officials said the electric vehicle unit, called “Ford Model e,” will be profitable before taxes by late 2026 with an 8% pretax profit margin. But they wouldn’t say exactly when it’s expected to start making money.
Chief Financial Officer John Lawler said Model e should be viewed as a startup company within Ford.
“As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build (sales) volume and gain (market) share,” he said.
Model e, he said, is working on second- and even third-generation electric vehicles. It currently offers three EVs for sale in the U.S.: the Mustang Mach E SUV, the F-150 Lightning pickup and an electric Transit commercial van.
Why is everyone trying to reinvent the wheel?
Ford expects $3 billion in losses from electric vehicle business unit this year | Just The News https://t.co/9xdj0elhpf
— John Solomon (@jsolomonReports) March 23, 2023
Ford warns of $3B loss on electric vehicle business for 2023 https://t.co/mfOqF9xrGV pic.twitter.com/4cru5ktmvz
— New York Post (@nypost) March 23, 2023
So happy to see @Ford losing money in this chase of a leftist utopia. We live in a fossil fueled world. Ford listened to a deranged old man (joe biden) and now paying the price. https://t.co/ftbhs5i2kJ
— AWR Hawkins (@AWRHawkins) March 24, 2023
Is there a Biden bailout in Ford’s future?