Posted on 03/22/2023 10:50:40 AM PDT by Oldeconomybuyer
DETROIT – Ford Motor is about to tell investors what they’ve long wondered: How much is the transition to electric vehicles costing?
The automaker on Thursday plans to begin reporting its financial results by business unit, instead of by region, ushering in the new reporting structure with a “teach-in” for analysts and media.
Deutsche Bank analyst Emmanuel Rosner believes Ford could be incurring gross losses of about $9,000 per EV sold. The analyst expects Ford to reveal Thursday Model e operating losses of $6 billion for 2022. That’s after accounting for significant research and development investments — roughly 65% of the company’s total R&D — into the EV unit.
“The EV business could report much deeper losses than investors expect, which could make Ford’s target for 8% EV EBIT margin by 2026 particularly difficult to achieve,” Rosner said Monday in an investor note.
Aside from EV leader Tesla, no major automakers are expected to generate meaningful profits from electric vehicles for at least several years, as the industry works to increase EV output and manufacturing scale. That’s particularly true of EVs like Ford’s, as mass-market vehicles typically generate lower profits than luxury models.
(Excerpt) Read more at cnbc.com ...
Not to worry, taxpayers will bail them out.
Losing $9K/unit. Not to worry, they’ll make it up on volume.
Seems as if everything is going according to plan. The most important thing is that they have a very high E.S.G. score.
So, what this means is expect ANOTHER big auto Fed bail out.
Freedom and the Free Market is the Road to Wealth and Independence.
- "The Wealth of nations", Adam Smith.- As evidenced by America in the 1800's.
Go woke, go broke.
Apparently, every manufacturer has decided to go electric at once. There was a news piece on this morning saying there were 130 manufacturers in the game, some of them brand new to cars. I suspect there is enough market for one or two manufacturers, but not three or four. Especially, not a hundred or more. Briefly Rivian was the most financially endowed company in the country, and they’d not yet made a vehicle. We’re seeing electric hysteria. This will end badly for everyone involved. I suspect that even market leader Tesla will not be here in ten years. Good luck even keeping your Tesla running after they go belly-up. They’ll all be bricked by some coding error. We are looking at the modern version of the tulip bulb crisis.
Well, as they say...
Stupid is as stupid does.
Stupid is going along with what the democrats demand, and the democrats demand that, climate change (stupid in itself) be addressed. Stupid all around.
I believe Toyota is saying no to this bull shit. They may be the only ones.
The auto manufacturers are counting on a federal bailout.
Heads they win, tails we lose.
What’s the joke?
My Dad sells watches at wholesale.
Yeah? Well, my Dad sells them below cost?
How does he make any money?
He sells a lot of watches.
How can they afford to absorb billions of losses in developing electric cars?
Granted that there are costs involved in developing new product lines, in any line of business.
But $6 billion is serious money.
Then there’s the still unanswered question as to whether people are going to buy these electric cars in big numbers.
So correct.
and Ukraine, and the banks, and suits against the vaccine manufactures.
Isn’t there someone working at Ford who saw this coming?
Ouch !
.
Shockingly True.
Talk about turd polishing!
That person lost their job during the equity diversity right sizing.
Awwwwwww! Good.
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