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 ...
That’s for sure.
New CFO at Ford was previously at Tesla in job called CFO there. Question is: If he was really good would he still be at Tesla? Or maybe he is really good and that is why he is at Ford.
Me? I am just someone who poses comments, and juxtaposes thoughts.
Edie
Interesting that you are looking at Mazda.
A friend just had his 20 year old Honda Accord (288k miles?) become too expensive to repair. Ended up at a Mazda dealership to buy a used 2019 CX-5. Slim pickings is the word.
I really like my electric Jeep. Don’t know what all the hub-bub is about electric vehicles!
Been with out power for weeks post hurricane?
Quit trolling.
“Imagine” only works in politics and marketing, not engineering and physics.
but they got the full value of their Carbon Credits though, dint they...
If that's a 5.4 V8 engine, that's almost double the guesstimate in my head. The oil pump on that engine is mounted flat to the front of the engine block and can be removed without dropping the oil pan. The radiator, water pump and engine accessory belts and pulleys all have to be removed for access, but it's not an "engine out" type repair.
Did you get an oil pressure warning that led you to go to the mechanic?
Well, the Mustang II is no longer the ugliest pony in the corral.
I don’t know how many EV sold in the 4th Q of 2021 versus 1st Q of 2022, but I suspect their contribution to the 5% decline in sales dollars is very small.
Overall, we have had pretty luck with Fords. The only one we didn’t get a couple hundred thousand miles on was a Crown Victoria Police Interceptor, and that one was my own fault. I do all of my own work however, and have not bought any of them new. Crown Vic cost me $2000 at auction and I put 50,000 miles even on it. It was a beautiful head quarters car and handled like a dream.
Ford is mostly selling trucks, so maybe the decline is due to production, but it is hard to see that electric vehicle sales significantly caused the 5% decline in sales.
I am also curious about a used car market for ev’s. How would you know what you were buying and if you would need to replace the batteries immediately or shortly down the road?
How wold you have any idea of previous maintenance? At least with a ICE, you can smell the oil, look for leaks, etc...have SOME inkling what you might be getting...
You can not afford a 4800 dollar repair but you can afford a new vehicle.
The economics of that does not make any sense.
"Ford's New Ad Pokes Fun at Elon Musk's Loud Mouth and Thin Skin"
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.”
The real problem for EV is not going to show until California gets a few million home chargers online. they can’t even run the a/c for homes at night without brownouts, and when 1,000,000 50kw chargers are running at night when the solar is dead, the grid will collapse.
I saw a Rivian truck on the road about a week or so ago. Until then, I’d never heard of it. Sharp looking truck.
For $4800 you should be getting a new engine. Well, almost.
OTOH,I've read a lot about GM's diesels in the 80's...the ones they put into sedans. A real horror show is what I've read...so much so that they played a roll in the development of the hatred for diesels here in the US.
But,alas,diesels are dying here *and* in Europe....thanks to scumbags like Obama and algore,both of whom have multi million dollar beachfront mansion.
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