Posted on 05/06/2022 10:18:16 AM PDT by fireman15
Major U.S. automaker Ford blamed its sizable investment in electric vehicle (EV) company Rivian for its dramatic revenue decline in the first quarter of 2022.
Ford reported revenue of $34.5 billion between January and March, a 5% decline relative to the same period in 2021, and a net loss of $3.1 billion, according to the company’s earnings report released Wednesday. The Detroit automaker said its large investment in Rivian accounted for $5.4 billion in losses during the first quarter.
“A net loss of $3.1 billion was primarily attributable to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian,” Ford said in the earnings report.
Ford maintains a roughly 12% stake in Rivian, CNBC reported in November.
Rivian has posted massive profit losses of its own and its share price has plummeted nearly 70% over the last six months. The value of Ford’s roughly 102 million Rivian shares has fallen from about $17.5 billion to $3.2 billion since November.
In the final three months of 2021, Rivian reported a net loss of $2.5 billion.
Automakers have increasingly turned their attention toward manufacturing electric vehicles as governments push aggressive green energy plans. President Joe Biden has promised to craft policies to ensure 50% of new vehicle sales in the U.S. are emissions-free by 2030 and every addition to the federal government’s 600,000-vehicle fleet is electric by 2035.
However, Rivian CEO RJ Scaringe recently suggested that the supply chain for EV batteries is still far behind where it needs to be to achieve many of the goals pushed by Western governments, the WSJ reported.
“Put very simply, all the world’s cell production combined represents well under 10% of what we will need in 10 years,” Scaringe said last week. “Meaning, 90% to 95% of the supply chain does not exist.”
(Excerpt) Read more at thestarnewsnetwork.com ...
Yup. Just need a truck, 3 on the tree and my luxury item would be an AM radio. I don't need an iPhone on wheels.
Good grief. No they didn't. Rivian has no revenue nor was it expected too so they had nothing to do with Ford's revenue miss.
But they did significantly impact Ford's reported profit.
Wherever Joe goes, disaster follows.
Hi.
Ford’s electric “Mustang” didn’t fair well?
5.56mm
Too electric to fail.
Low inventory could reduce sales. That would produce less profits and have nothing to do with electric cars.
Investment in Rivian is the “legacy” industry’s way of hedging against the success of Tesla.
Except they are in production hell, and can’t deliver in quantity - thus the tremendous losses that are written down.
Electric is here to stay. Get used to it. Performance is there already.
Now imagine if batteries are 1/3 the price, or 2x or more the range.
Game over. This is why everyone invested billions. Because they must somehow secure a path or get left behind.
The automobile industry is a plodding industry that resists change. They resisted seat belts for 20+ years...
Yes, Ford and other ICE companies trying to compete with Tesla reminds me of all those poor suckers who tried to get in on multilevel marketing schemes after it was too late.
There are always people at the very top of the pyramid who got rich - and they make it seem like if you do the same thing they did, you’ll get to the top one day.
Trouble is, if you look at a pyramid - the top is very, very small.
I see a big government bailout coming.
Screw them.
Look at a Toyota Highlander it is the ONLY Lrge SUV worth the money. They will easily go 300000 miles if you do basic maintenance
Not to worry ... Mayor Pete is on it! /s
EV could indirectly be responsible..or the efforts to cause gas oil to skyrocket..contributing to inflation.. as well as attempting force people into buying overpriced EVs they really do not want....
I'm on the tail-end of my first 3 year car lease. I traded in my 2005 Nissan Altima for a 2019 Nissan Sentra. I hated the car from the beginning, because it didn't have the power seats, and extras that my Altima did, but I didn't want to pay a lot of money each month for a car that would sit most of the time in my parking space.
At 74, I rarely go anywhere other than doctor appointments, and the grocery store. I periodically visit my oldest son who lives two hours away, and up until this year, I was driving from New York to Indiana once a year to visit my youngest son for a couple of weeks. He's moving back here soon, so I won't be making that trip anymore. I had a 12,000 mile a year plan. After 2 years and 8 months, the car just turned 12,000 miles. I don't want to buy the car outright, so will be trading it in for another leased vehicle. The salesman at the dealership started calling me two months ago to see if I was interested in a deal. They want to get rid of what they have on their lot, but I'm not ready to trade it it. At the time he called, I had fractured my knee, and told him to call me back in May. He called me the other day, and I had to tell him I'd tested positive for Covid over the weekend, and that I wouldn't be able to do anything for a while. I'm really not interested in an early deal unless he makes it worth my while.
I saw one for the first time the other day, and I was puzzled.
I thought it was one of those things where the owner took a mustang grill logo and put it on something, but...apparently that butt-ugly thing is for real.
I would be embarrassed to own that car. Probably fun to drive, but...ugly.
Just imagine.
They shouldn’t make decisions when they’re Drunk on Global Warming
Yes but not only that.
Dealers who sell people vehicles for 20,000-30,000, then jack the price up 10-20 grand after you’ve signed a contract, are a big factor.
That was my first thought when I read the title of the article.
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