Ford Expects Major Losses on EVs, but a New Truck Might Help

Earlier this week, Ford shared its new corporate reporting system, which outlined the division of Ford's electric, commercial, and gas/hybrid passenger vehicle divisions. At face value, this news seems like corporate jargon tuned for financial analysts, but it sheds light on how consumers and investors can expect Ford to operate in coming years. And when it comes to Ford's electric division, known as Ford Model e, it expects to lose billions of dollars going forward.اضافة اعلان

Specifically, Ford expects to shed about $3 billion on its electric-vehicle side this year, while it lost around $2.1 billion in 2022 and $900 million the year before that. These are steep losses, but Ford claims its EVs will be profitable by 2026 (General Motors has outlined a similar timeline) when a variety of factors, including increasing sales, reduced battery costs, and improved research and design, will allow for an 8% profit on EVs. Comparatively, Ford's overall operating profit was 6.6% in 2022, according to Ford's year-end report.

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