How Ford Loses $3 Billion on America’s Most Popular Car
The Ford F-150 – a large pickup truck – is the most popular new car in America. It’s been like that for years. However, Ford managed to lose $3 billion by 2023 on the F-150 (and Mustang Mach-E).
We need to refine our topic. Ford didn’t lose money A regular F-150, but in the F-150 Lightning. According to CFO John Lawler, Ford’s electric division losses have widened from $2.1 billion in 2022 to $3 billion in 2023.
Ford is developing three fully electric models
In the United States, Ford now makes three all-electric models: the E-Transit, the Mustang Mach-E and the F-150 Lightning. The latter is more popular in North America. Late last year, Ford even stopped taking orders.
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More than 200,000 orders for the F-150 Lightning
The Ford F-150 Lightning was introduced early last year. By December, Ford already had 200,000 orders for the plug-in pickup. It takes at least three years to restore them all, which is why second-hand lightnings go for exorbitant prices.
Ford is now divided into three business units
Ford will be divided into three business segments by the end of 2022: Ford Blue (passenger cars), Ford Pro (commercial vehicles) and Model E (electric models). The latter segment suffers huge losses due to high investments.
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More investments in EV and battery technology
Ford is investing billions in the development and production of EVs and batteries for those EVs, while absolute sales numbers are still relatively low. They have to be compensated by two other companies.
And it will work, because Ford Blue and Ford Pro are on track to make USD 7 and USD 6 billion in profits by 2022, respectively. Ford hopes its electric Model e division will turn a profit by the end of 2026.
General Motors is very optimistic
General Motors is more optimistic. Its power branch may write black figures by 2025 itself. How is that possible? GM is ahead of Ford in investing in new plants.
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None of the manufacturers make a profit on their EVs
At the moment, apart from Tesla, there are no car brands that are profitable in electric vehicles. This will certainly change in the coming years as production and sales increase.
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