Ford Set To Lose $4.5 Billion On EVs This Year

Ford Motor Company registered a strong sales growth in the second quarter of the calendar 2023. Profits in the second quarter were $1.9 billion, nearly triple the year-ago level on revenues of $45 billion, 12 percent. But it’s the sales of vehicles with internal combustion engines that pushed the profits for the carmaker. Though the carmaker signalled near-term losses for its EV sales, it is bigger than earlier forecasted. Ford now sees operating losses in its EV business of $4.5 billion, up from the prior $3 billion.

Chief Financial Officer John Lawler said, “EV adoption is not going to be a straight line. We have flexibility. We are going to optimize” The automaker slowed its timeframe for ramping up EV production. It said that it would manufacture 6 lakh units of EVs a year by 2024 instead of 2023.

To push the EV agenda, For in fact announced a price cut on the F-150 Lightning of as much as $10000. But Ford is not the only carmaker to announced such a price decrease. Several other EV makers like General Motors, Tesla were among the companies who announced a price reduction on its electric vehicles.

Lawler went on to state that surveys had showed 20-30 percent of consumers express interest in EVs but only seven percent end up buying it.

Ford now expects 2023 earnings before interest and taxes of between $11 and $12 billion, up from $9 to $11 billion.