Ford Will Lose $3b in 2023 - on EVs

[dtech]

Reported in Wall Street Journal and Reuters:

March 23 (Reuters) - Ford Motor Co (F.N) 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.

Chunk of change but Farley is committed, and the $3B is pre tax. It's only money after all, and nobody said chasing Elon would be cheap.

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[IdahoRanger]

Probably saved that from the deleted items on the Ranger.

 

[Rinn69]

One day, in the future, EV's MAY be practical.....but that time is not now....maybe 10+ yrs from now....maybe.

 

[Dr_Strangelove]

I have to be pragmatic about these kind of situations because the true long-term economics of this deal are behind privileged conversations within Ford corp. I read the same article and saw the quote from Farley about how shareholders should look at the EV venture as a "startup." It's not surprising to me that a huge new business venture would be a money loser early on in its conception. That's typical of the startup game. The problem for Ford, unlike a startup, is usually startups are looking at companies like Ford to eventually acquire them. For Startups, a healthy acquisition is usually part of the initial business plan..

Ford has to turn this into a money maker without help - and they will need the market to do that. I agree with others. The future of EV's, adoption, healthy infrastructure is going to settle this score for Ford.

 

[dtech]

I have to be pragmatic about these kind of situations because the true long-term economics of this deal are behind privileged conversations within Ford corp. I read the same article and saw the quote from Farley about how shareholders should look at the EV venture as a "startup." It's not surprising to me that a huge new business venture would be a money loser early on in its conception. That's typical of the startup game. The problem for Ford, unlike a startup, is usually startups are looking at companies like Ford to eventually acquire them. For Startups, a healthy acquisition is usually part of the initial business plan..

Ford has to turn this into a money maker without help - and they will need the market to do that. I agree with others. The future of EV's, adoption, healthy infrastructure is going to settle this score for Ford.

forgot the link to Reuters - in 2024 Ford expects the EV biz to profitable.

https://www.reuters.com/business/au...iness-this-year-2023-03-23/#:~:text=March 23%

 

[dtech]

I have to be pragmatic about these kind of situations because the true long-term economics of this deal are behind privileged conversations within Ford corp. I read the same article and saw the quote from Farley about how shareholders should look at the EV venture as a "startup." It's not surprising to me that a huge new business venture would be a money loser early on in its conception. That's typical of the startup game. The problem for Ford, unlike a startup, is usually startups are looking at companies like Ford to eventually acquire them. For Startups, a healthy acquisition is usually part of the initial business plan..

Ford has to turn this into a money maker without help - and they will need the market to do that. I agree with others. The future of EV's, adoption, healthy infrastructure is going to settle this score for Ford.

Should EV sales grow at the projected pace - Ford should be well positioned in the EV biz, a lot of the necessary pieces are being worked out - and with a large assist from the US gov . As I've stated before I like the incentives that require significant sourcing from within the US . Some are opposed to gov incentives and subsidies, but it's fairly common practice globally.

 

[RedDakooter05]

Hah, good.

 

[Scottopia]

Probably saved that from the deleted items on the Ranger.

$10 BILLION in ICE profits FY22, $7 BILLION projected FY23... come on Ford, Jimmy... put the toys back in the Rangers!

 

[Msfitoy]

Bye bye Ford...where will we get replacements parts in the future? Maybe Toyota's got the right ideas...they're not putting all their eggs into EVs...

 

[dtech]

600k EVs sales in 2023 and still $3 B in the red, must be counting on a fire sale. Things could get interesting at the Blue Oval.

"The Blue Oval projects that it will cut EV costs by producing more components in-house, and it also projects an EV production capacity of 600,000 by the end of this year and 2 million by the end of 2026. Ford says it intends to use that capacity -- meaning it expects to sell that many EVs. It also thinks half of its EV sales, at least initially, will be from new customers."

https://www.thetruthaboutcars.com/c...n-on-ev-business-unit-don-t-fret-yet-44500033

 

[Bob902]

Probably waiting for a gubment bailout?

 

[SigOris]

the losses can be traced back to the fully intact MY 19 Rangers that caused problem right @AzScorpion

 

[TJC]

Should EV sales grow at the projected pace - Ford should be well positioned in the EV biz, a lot of the necessary pieces are being worked out - and with a large assist from the US gov . As I've stated before I like the incentives that require significant sourcing from within the US . Some are opposed to gov incentives and subsidies, but it's fairly common practice globally.

When you take $$ from the government, they own you.

 

[JasonTremor]

From my perspective, the only way for auto makers to reduce costs is to use common parts. Use standardized electric motors, drivetrain components and electronic components and build your brand image off the interior and exterior design that each makes their own.

Kind of like commercial zero turn mowers. Parker has the market on the hydraulic pumps and motors and almost all zero turn mower manufacturers use those common off the shelf parts. Engineered once reused many times.

 

[Msfitoy]

Probably waiting for a gubment bailout?

We, the gubment's b*tch, will be broke ass...I know I am...

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