Ford Motor Co. has reported losses of $3 billion in electric conveyance sales over the past two years, before taxes, as it taps into new technology, according to a report by AP published on Thursday, March 23.
The company announced these figures on Thursday after implementing new financial results reporting system. This new structure allows for three operating units that can be separated from each other, such as internal combustion and commercial vehicle operations.
The new system shows that the Ford Model e electric vehicle unit suffered pretax losses of $900 Million in 2021 and $2.1 Billion in 2022.
Ford’s EV Unit
Ford is investing heavily in four new battery factories, new vehicle assembly plants, and acquiring raw materials for electric cars. The company expects to lose $3Billion this year.
John Lawler, Chief Financial Officer, compared Model e with a Ford startup, stating that “EV startups make money when they invest in capability and develop knowledge, increase (sales volume) and gain (market share).
He said that Model e was working on second-, or even third-generation, electric vehicles and that three EVs are currently available in the US. These include the Mustang Mach E SUV and the F-150 Lightning pickup.
Ford’s new corporate reporting system is designed to give investors more transparency than the old system that reported results by geographical regions.
In the last two years, the automaker reported earnings for each of the three units.
The Model e electric vehicle unit suffered losses of $ 900 million in 2021 and $ 2.1 billion in 2020. Ford Blue, which sells internal combustion or gas-electric hybrid vehicles, made just over $10 billion before taxes in the same period. Ford Pro, the commercial vehicle division, earned $5.9 billion during those years.
600,000. EVs per Year
Ford anticipates producing electric cars at 600,000. Per annum by 2026.
Lawler predicts Ford Blue will make a $7 billion profit before taxes in 2022, slightly higher than last year. On the other hand, Ford Pro will earn $6 billion before taxes, nearly double last year’s earnings.
Ford has just unveiled a new Explorer for Europe. However, this time it will be completely electric. As part of its EV rebranding, the new Explorer will launch first.
According to the US automaker, this new electric vehicle combines American design and German engineering.
Ford will use the flexible MEB design of Volkswagen to build this car. As per an agreement between the companies, it will be the first vehicle from the automaker to use the electric platform in 2019. It will be built in Cologne, Germany.