Most Viewed Content:

Benelli Tornado 552R Bike launched, priced at 32,800 CNY

The Benelli Tornado 552R motorcycle was recently launched, priced...

OpenAI Launched Assistants API, Allowing Developers to Customize AI Assistants with One Click

At today's OpenAI's first developer conference, OpenAI launched the...

Microsoft working on new features for Win11 / Win12: smart notifications, depth-of-field effects

According to the source Albacore (@thebookisclosed), Microsoft is preparing...

Ford is sparing no expense: EV business expected to lose $3 billion this year

Although Ford Motor Company is profitable as a whole, its electric vehicle division is still in its infancy and needs to invest a lot of money in building new factories and purchasing raw materials. Ford released the company’s financial forecast today, showing that its electric vehicle division will lose $3 billion this year.

Ford

Image source Pexels


Ford is the first company in the U.S. market to launch an electric pickup, along with a mid-size electric crossover and an electric cargo van for business users. But to launch these products, Ford had to spin off its passenger car business. The electric vehicle division will be named Ford Model e, while the internal combustion engine vehicle division will be named Ford Blue, a move designed to let investors and analysts see that Ford is embracing electrification.

John Lawler, Ford’s chief financial officer, said the Ford Model e should be considered a startup. Just like making a profit.

In fact, the Model e division is already losing money: $900 million in 2021, $2.1 billion in 2022, and a projected $3 billion loss in 2023. The reason is obvious: It has doubled Mustang Mach-E production to 210,000 a year and tripled F-150 Lightning production to 150,000 a year. In addition, Ford is building a battery development center in Michigan, building battery factories in Kentucky, Tennessee and Michigan, and has signed contracts for minerals needed for 600,000 electric vehicles per year.

But the other two divisions — Ford Blue and Ford Pro (commercial vehicles and services) — are expected to bring in enough cash to generate between $9 billion and $11 billion in pre-tax profit and $10 billion in free cash flow. $6 billion. So at this stage, Ford is unlikely to scale back its EV ambitions and instead absorb losses in the Model e division for now.

Ford said it expects to achieve an 8 percent EBIT margin on the Model e by the end of 2026, and overall, Ford will have a 10 percent EBIT margin by then.

Latest

Lincoln Z/Adventurer hybrid interior debuts, to launch on March 6th

The new Lincoln Adventurer and Lincoln Z gasoline-electric hybrid...

Stellantis recalls over 350,000 vehicles of Jeep Grand Cherokee and RAM Promaster models

Recently, we learned from foreign media that Stellantis Group...

Annual revenue of Volkswagen Group increased by 15% to 322.3 billion euros

We learned from the Volkswagen Group official that the...

McLaren to launch new supercar by the end of the year equipped with V8 hybrid system

Recently, foreign media reported information about the successor model...

Newsletter

Don't miss

Lincoln Z/Adventurer hybrid interior debuts, to launch on March 6th

The new Lincoln Adventurer and Lincoln Z gasoline-electric hybrid...

Stellantis recalls over 350,000 vehicles of Jeep Grand Cherokee and RAM Promaster models

Recently, we learned from foreign media that Stellantis Group...

Annual revenue of Volkswagen Group increased by 15% to 322.3 billion euros

We learned from the Volkswagen Group official that the...

McLaren to launch new supercar by the end of the year equipped with V8 hybrid system

Recently, foreign media reported information about the successor model...

Leapmotor is expected to launch compact car C16 at Beijing Auto Show

Recently, in a media interview after the Leapmotor launch...
Stephen Cruise
Stephen Cruisehttps://www.techgoing.com
Stephen Cruise is a senior editor covering latest smartphones, EVs, PC gaming, console, and tech with 11 years of experience.

iQOO Z9 series phone parameters exposed, with up to 6000mAh battery

Blogger @digitalchatstation exposed the basic parameters of the iQOO Z9 series of phones. The entire series focuses on long battery life, and claimed that...

Samsung Galaxy A55 5G expected to be released on March 1st with Exynos 1480 chip

Winfuture today announced the specifications of the Samsung Galaxy A55 5G phone. This phone will be released on March 1 and will sell for...

Samsung Galaxy Z Fold 6 and its predecessor details comparison

After the source OnLeaks shared a high-definition rendering of the Galaxy Z Fold 6 phone, it recently joined hands with the foreign technology website...