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 ...
Exactly. Uncle Joe Biden will be there with the taxpayer handouts to the UAW and the automakers.
Just like the Soviet Union, our DC green-woke central planners is in a race between finally achieving our (neo) Marxist ideology, and bankruptcy/collapse
And expect a taxpayer bailout even though there is no sound market for large scale EV production.
The carmakers push EVs incessantly on TV and the people don’t seem to want them. The same could be said for the vaccine. TV itself is very annoying with all the garbage the woke corporations under oligarch pressure try to push down the people’s throats.
Governments will move forward with EVs crap even if they bankrupts the taxpayers
“Rosner believes Ford could be incurring gross losses of about $9,000 per EV sold”
Probably not including what they are foregoing by not selling that customer a regular vehicle that they could sell at a profit.
Don’t you love the sing songy flair of the piece telling us EV makers are all going to go bankrupt?
Ford and GM are on their way to becoming ZERO stocks, I personally would buy stock in Toyota which isn’t going the EV route of all the major auto makers.
Goodbye Ford, you had a great run. If Hank the Deuce were here , this would not be happening.
“We’re seeing electric hysteria.”
I believe the proper term would be “electric mania”, as in “tulip mania”.
Communists think making a profit is a crime.
Excuse me, General, sir, but may I point out that several U.S. States and most of the European Union decided to adopt targets dates (most frequently 2035) to phase out ICE vehicles first, then every manufacturer decided to go electric.
Several years ago Ford was in rough shape and borrowed about $28 Billion to retool and change, every drop of equity they had was used up. wonder what the true state of their finances are right now. Their stock has never recovered in 20 years or longer.
Remember when these guy’s job number one was to built the best affordable GAS pickup truck in the world?
The orignal battle was ICE vs steam vs electric. ICE won that war 100 years ago. Why are we refighting it?
Marxist Ideology has nothing to do with it. Marxism never worked to begin with, Marx and Engels never said who or where the means of production should be, but it has failed everywhere as part of the State.
I wonder if they ever recover these losses.
sometime people will finally decide the global warming is a great hoax!
I really don’t think it’s Fords fault, ultimately.
They obviously make a lot of money from gas powered SUVs, F-150s and Mustangs using traditional technology.
This whole electric vehicle thing is driven by the government, not buy the consumer.
Really automobile makers have no choice but to make electric vehicles either because the politicians are stupid and do not understand the basics of science (such as energy density of batteries vs. petrol) or they intend to destroy things. Those are the only two possibilities.
... as the industry works to increase EV output and manufacturing scale by getting more kids in the Congo to work from $2 a day in Chinese-owned mines.
I believe Toyota is saying no to this bull shit. They may be the only ones.
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to all electric, but yes to hydrogen - an even worse bet.
I suspect the market will grow once a mileage tax on all vehicles is implemented, meaning ICE vehicles will be double-taxed, rendering them less cost-effective. But market demand will definitely skyrocket once the government bans combustion engines -- first banning new care sales, then raising the emission standards, effectively eliminating ICE cars.
I also suspect that automobile sales will follow the SAAS method (like Adobe products). You won't be able to "buy" a new car, only lease it on a monthly basis.
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