Ford to Lose $3 Billion on EVs this Year
Ford Motor Co. expects its electric vehicle business to lose $3 billion this year, even as it forecasts increased profits on its internal combustion and commercial vehicle operations.
The 2022 loss on its Model e business equates to a margin of negative 40.6%, Ford said, while it posted external revenue of $5.25 billion. In a presentation to investors, CFO John Lawler said that by 2024, the company’s first-gen EVs will be EBIT margin positive. “Ford Model e is an EV startup within Ford,” he said. “As everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share.”
The losses are expected to increase this year because of the money being spent to build manufacturing complexes in Tennessee and Kentucky and to offer alternative battery chemistries, states Lawler.