Ford Reports Staggering Loss On Every Electric Vehicle It Sold - Loss of Over $100,000 per electric vehicle sold in the first quarter of 2022,

MSN ^ | 05/10/2024

[SeekAndFind]

Ford reported losing over $100,000 per electric vehicle sold in the first quarter of 2022, with its electric vehicle division posting a $1.3 billion loss.

Electric vehicle sales volumes dropped 20% as Ford was forced to slash prices due to weak industry demand.

“Americans don’t want EVs at levels Biden’s climate hysteria require,” businessman Andrew Puzder wrote on X. “Ford’s EV Q1 losses soared to $1.3 billion — a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity.”

The company expects $5 billion in electric vehicle losses for the year, up from $4.7 billion last year.

Ford has delayed two new electric models and will instead focus on hybrids as consumer demand plummets. Analysts note many automakers rushed into electric vehicles that were too expensive given small market demand.

“Many companies rushed in too fast with E.V.s that were too expensive and there was not as much of a market for them as they thought,” Guidehouse Insights principal analyst Sam Abuelsamid said. “That’s made it a lot tougher to sell those vehicles.”

Numerous companies have canceled electric vehicle plans or are struggling financially due to high prices, quality issues, lack of charging infrastructure, and performance decreases – reflecting widespread consumer complaints that electric vehicles remain inconvenient and unreliable.

[hoosierham]

They should have stopped with hybrids; bigger market.
Hybrids can make sense in that use on battery in dense urban setting creates less air pollution (similar to prefering electric over ICE forktrucks inside warehouses); while ICE powers vehicle in longer trips and more open areas.

[bert]

now you have got it right. All the capital invested and all direct expense is charged to current revenue.

There is no mention of all the unsold and unsalable $70k to $130 k trucks on dealer lots

It is politically correct to charge the losses all to EV’s rather than the vaunted F 150’s

[CenTex]

Ole Henry a’spinning is more than can be said for the tires on mot EV’s...

[Deplorable American1776]

Ford needs someone who knows that EVs are not going to be profitable today. I guess their accounting department must have listened to LIBERALS and hired IDIOTS who believes math is racist! 🤓

[IamConservative]

Many companies are now following Toyota’s approach, Ford included, on selectable gas/hybrid/electric. Basically, a hybrid with a bigger battery.

I have a Toyota hybrid now. It is nice and smooth. Toyota is transitioning their fleet away from large displacement engines. Tundra is now a 3.4L Twin Turbo Hybrid. The old 5.7L V-8 had ~385HP. The new platform has 440HP. It is wicked quick, but you can feel it start laying down at higher speeds. Not at all surprising. There is no replacement for displacement.

[Carriage Hill]

Once they make refineries and gas stations “disappear”, due to the corrupt EPA regs, they will take it.

[sleepy_hollow]

Hmmm.... Ok, let’s try to get this through to you. If they are losing 100K per car then the car costs 100K more than the sales price. So none of the EVs cost 50K to make as you erroneously suggest. Lets say the EV MSRP was 60K. Then the cost to make the EV would have been 160K.

Using the overal headline numbers, then that means they sold only 13K EVs and lost 100K per car. 13K X 100K = 1.3B. That’s how many EVs it would take to lose 1.3B at 100K loss per EV.

Stupid companies. Stupid, stupid companies. Markets will hold them to task.

Now who will hold brain-dead Joe to task? Will you?

[sleepy_hollow]

We’re all driving Saturns now, right? Big success.

BTW, it does not matter how the accounting is done, amortization is simply a way of reducing the near-term impact of expenses (capital expenses). So, your logic is ill-founded.

If we just used a simplistic cash accounting approach, the losses would have been much larger per car now. However, future losses would be much less since the losses would have been accounted for up front.

Treating capital expenses using amortization dampens the losses. It is not exacerbating them by any means. Quite the opposite.

[ProtectOurFreedom]

Yep. It’s nothing but corporatism and companies like Ford sucking up to their Deep State government masters.

[Vaduz]

Ford Electric Vehicle

Found
On
Road
Dead

[oldtech]

There’s a lesson here, but apparently it is still to be learned by those most concerned. People who bought these things also need to be concerned if the EV program is (hopefully) dropped as they will then be the owners of “orphans”. Now that’s not all bad but these “orphans” may not have the benefit of parts sources that existed with other previous orphans like Edsels, Studebaker, etc.

[dfwgator]

The whole point of EVs is to drive the cost of personal transportation out of the range of the average person.

[oldtech]

Plenty reasons here to NOT consider owning an EV. Admittedly, I had not even considered the partial cost of an EV being passed on to the normal vehicle line. So now I guess you can know that new ICE vehicle you bought is TRULY overpriced.

[Ge0ffrey]

No more reasonable than the existence of unicorns, I suppose.

[Dr. Sivana]

So, your logic is ill-founded.

Saturns weren't a huge success, but the plant and tooling (Saturns started out 100% separate) were FAR more expensive than a new model of an existing Olds Cutlass or Chevy Celebrity. Eventually Saturn became stable, though GM messed things up by the impatience of not sticking to the original vision. (They started using Saturn R & D in other brands, removed features that made Saturn distinctive (e.g. plastic panels), etc.

My point was that the $130K number was misleading because those initials costs won't always be there. The article doesn't say if the costs are being spread, or by how many years. Tesla would lost money early on, and would have lost even more without massive government subsidies, both direct ($7,500 refund) and hidden (selling carbon credits), but eventually the company wound up making plenty of money even with reduced subsidies.

To get a number like $130K per car, there had to either be a massive unforeseen expense on the production side, which didn't happen as far as I know (save for those recalls for those Chevy EVs that liked to catch fire), or a lack of sales that inflates the cost per unit number until the cars are sold. These things are not exactly world-beaters in sales. But some here think if Ford sold 10,000 more of these things it would cost them $13 billion dollars, and that is not the case.

My fear is that Biden, with the cooperation of Congress, will keep on twisting the screws on production of ICE cars and petrol supplies, which is what GM/Ford are responding to. Toyota has been pushing a compromise where ICE/EV hybrids are the norm, and never went in with both feet.

Regular folks will have to prepare to go "Full Cuban", preferably with pre-2020 cars as obsolete electronics are the hardest to repair/replace. If I were an industrial magnate, I would look into manufacturing rust resistant body panels and undercarriage parts for old Camrys, Impalas, Mustangs, and pick-up trucks, and where possible, by-passes and substitutes for older vehicles electronics.

[Saintgermain]

Well, one can always wish, maybe some days. In the mean time I think gas powered cars are just fine as their contribution to pollution is by now very minimal and at the moment I would not even consider an electric car.

[mewzilla]

Do you have any idea how many of those things have been sold in fleet sales to the public sector?

Wanna good laugh at the suckers who paid for those fleet sales?

Look in the mirror.

[Mr Rogers]

Hybrids will sell. I wish my Tundra with its big V8 had a small hybrid involved - gas mileage is pretty good on level roads or not accelerating. An electric boost during sudden acceleration or up long hills would give a big boost to my gas mileage without compromising much.

Pure electric? Nuts!

[TalBlack]

They couldn’t stop at hybrids because they’re motivated by their weird ideology and not reason. There seem to be a lot of people happy with hybrids.

[DIRTYSECRET]

*Wanna good laugh at the suckers who paid for those fleet sales?
Look in the mirror.*

Oh my goodness! I guess all we can do is embrace the suck. Works for the left.