Posted on 07/28/2023 3:36:19 AM PDT by NautiNurse
Losses are going up on Ford’s electric vehicle business, but profit from its traditional internal combustion engine vehicles allowed it to beat Wall Street expectations.
[Snip]
The company was able to beat the estimates despite the fact that its losses before interest and taxes (EBIT) grew to $1.1 billion from its EV business, which the company calls its Model e division, up from the $722 million EBIT losses in the first quarter.
And those losses are going to rise, at least in the short term. Ford said it expects a Model e EBIT loss of $4.5 billion for the full year, up from its earlier forecast of a $3 billion loss for all of 2023. And it pushed back when it expects to start producing EVs at a 600,000 annual pace to some time in 2024, rather than by the end of 2023. It said the pricing environment for EVs was one of the main reasons for the new loss estimate.
[Snip]
But the company’s Ford Blue division, which makes most of its gas-powered consumer vehicles, posted $2.3 billion in EBIT profits, while Ford Pro, which is its commercial vehicle division selling primarily traditional internal combustion vehicles, contributed $2.4 billion.
[Snip]
Still Ford, like the other traditional automakers moving to shift from ICE vehicles to EVs, is losing money at this stage. Ford’s numbers work out to a loss of about $32,000 per EV that it sold in the second quarter, compared to a profit of $3,200 per vehicle sold by the Ford Blue division.
[Snip]
The current contract between the UAW and the “Big Three” unionized US automakers — Ford, General Motors and Stellantis — expires on Sept. 14.
(Excerpt) Read more at edition.cnn.com ...
Just imagine the loss per vehicle when you take out the generous gubmint grants....
Gobsmacked by the losses of $32K per vehicle.
“Profit only because of federal government subsidies” was accidently omitted.
$9.2 billion transferred from our pockets to theirs. Nice government we’ve got.
The end game is to eliminate cars and the freedom of travel...and lock people in the 15-minute cities.
Go woke...go broke.....time to take put options on all woke companies.
The government subsidies are going to the EV side of the company, which is hemorrhaging money. The ICE division seems to be humming along until the UAW sinks their teeth into profits.
Exactly. The gubmint will pay whetever it takes to keep automakers producing EVs. They’ll burn the in the desert or dump them in the ocean. Just keep producing.
Guy running the place is a total, left wing loon....
Jim Farley is a woke dude with Tesla envy, no matter what the consumer wants.
Fortunately, flyover country votes.
These types of faux economic moves add to inflation.
An “economy” works when one provides a product or service that another values. The dollar “value” of that transaction is determined by the market.
Government folks believe, therefore, if you just pay money for something, regardless of the actual value, it is an economic benefit to the tune of the amount paid.
But it’s really no different than throwing cash out of the back of a armored car. The economic benefit is only the value of the product or service. The rest is just dilution of the currency.
“Gobsmacked by the losses of $32K per vehicle.
“
A Ford salesman I’ve known for years told me that the dealership had to agree to take 20 Mach-e’s in order to get 100 F150’s. He said the Mach-e was unsalable. There is no market.
Interesting insider sales story. Thanks.
Agree to a point. In the global warming fervor, governments are throwing our tax dollars into the wind, with no quantifiable benefit or plan, either economic or weather-changing. It is simply a feel good waste of wealth.
I’m all for protecting American industries, but we are getting a good look at how protectionist trade policy ultimately works: massive government subsidies to produce inferior products that are only in demand because of government mandates.
I'm not an accountant, but I know which line I'd cut and which I'd continue.
Well stated.
Sadly, Communists still COUNT the votes....
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