Posted on 05/14/2024 6:47:01 AM PDT by bitt
Ford’s attempt to electrify its revenue through electric vehicle production has been a swing and a miss.
In response to the decreasing market for EVs, Ford has begun cutting orders from its battery supplies, according to Bloomberg.
Even though this changeup will be beneficial in the long run, Ford will not come out of its EV experiment unscathed. Sources told Bloomberg that Ford lost over $100,000 per EV in the first quarter of 2024, more than double its deficit from last year.
The news comes as the EV market across the country has taken a hit in 2024. The Associated Press reported last month that sales of electric vehicles only grew at 3.3 percent during the first quarter of this year, a sharp decrease from the 47 percent growth seen last year.
The EV share of total U.S. sales also fell year over year from 7.6 percent to 7.15 percent in the first quarter. The declining sales numbers support some automakers’ belief that they moved too aggressively in expanding their EV production, the AP reported. Given the state of the EV market, Ford is trying to reinvent its EV strategy. The American automaker has decided to reduce its spending on battery-powered models by $12 billion, Bloomberg reported.
Ford’s already forecast it will lose up to $5.5 billion from EVs alone this year.
Bloomberg reported that Ford CEO Jim Farley recently said Ford’s EV division, known as Model e, “is the main drag on the whole company right now.”
The company has taken several measures to try and remain competitive with the EV market king, Tesla.
(Excerpt) Read more at westernjournal.com ...
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When Ford loses money on their EVs they must raise prices on their internal combustion cars. The public pays for the losses regardless.
As the number of choices for EVs comes up, individual companies sales will go down. Not everybody needs or wants an EV.
So if you have just one or two companies to choose from, business for them is good. But if you have 20 or more choices, business is bad for everybody............
LOL. Who knew that pushing an unwanted, woke technology would be such a waste of time and money? Suck it up you incredibly dumb wokesters. More popcorn. Who is John Galt?
Shareholders will be raising hell
Sheesh.
Jim deserves a bonus.
Not if Joe wins his 2nd term.
IMHO, I want to cut Ford and GM some slack for being forced to at least give the EV thing a try. The Dims deserve blame for that.
But Ford should beat themselves up for putting so much of their EV tech and advertising into the most impractical use of EV's: large pickups. Practical use of EV's are cars in families who can set up charging at home, drive many miles (enough for the gas savings to be worth it), live in a warm climate, and have another car (i.e. married) so that the other car can be a gas car for the times an EV won't do.
That's my wife and me. And I do too much heavy load hauling too many miles for our EV car to be the pickup -- the pickup has to be gas or diesel. But our car does well for most of our normal driving and saves us plenty of gas (with the Dims' stupid war on energy) and gives us an option on which energy type we depend on before taking a trip. (Take the EV if gas is high and chargers are plentiful, take the gas pickup if chargers are few or charging costs more than gas. Unless of course the trip involves hauling cargo, in which case we take the pickup.)
”Even though this changeup will be beneficial in the long run, Ford will not come out of its EV experiment unscathed.
Sources told Bloomberg that Ford lost over $100,000 per EV in the first quarter of 2024, more than double its deficit from last year. “ (Emphasis mine)
”The news comes as the EV market across the country has taken a hit in 2024.
The Associated Press reported last month that sales of electric vehicles only grew at 3.3 percent during the first quarter of this year,
a sharp decrease from the 47 percent growth seen last year. “
”The EV share of total U.S. sales also fell year over year from 7.6 percent to 7.15 percent in the first quarter.
The declining sales numbers support some automakers’ belief that they moved too aggressively in expanding their EV production, the AP reported.
Given the state of the EV market, Ford is trying to reinvent its EV strategy.
The American automaker has decided to reduce its spending on battery-powered models by $12 billion, Bloomberg reported.”
”Ford’s already forecast it will lose up to $5.5 billion from EVs alone this year. “
”Bloomberg reported that Ford CEO Jim Farley recently said Ford’s EV division, known as Model e, “is the main drag on the whole company right now.”
(Article continues)
[[Go Woke, Go Broke: Ford Announces Mind-Bogglingly Huge Losses on Each EV Sold]]
Same thing happened to me when I invented lead balloons. The product that no one wanted fell flat and I went broke. Weird.
“ Not everybody needs or wants an EV.“
Talk about an understatement. Try “an overwhelming majority of people don’t want or need an EV.”
Further down in the article:
“Ford’s shifted its focus toward producing smaller, more affordable EVs. The company is fast-tracking the release new EV models it expects to debut in 2026. The models will reportedly start at $25,000.”
It appears to me the cost reduction would likely be in battery capacity, thus range. Seems like a potential flop to me.
The bottom line is that Ford went all in and wholly cast their lot with the Obama/Biden government’s irrational push for EVs. Sure, Ford probably got billions from their government masters, but it will be a net loss of billions for them. I am sure GM is in the same place. Ditto for whoever owns Chrysler now.
> But Ford should beat themselves up for putting so much of their EV tech and advertising into the most impractical use of EV’s: large pickups.
Impossible. If you’re in marketing, think only two thoughts:
1. Electric vehicles are the future.
2. Our highest margin vehicles are pickup trucks.
Post hoc ergo propter hoc - The best bet is go all in on electric pickups.
Isn't part of marketing thought to not mess up the branding of your cash cow? With Ford that'd be their F-150 trucks. Stamping their EV experiment with the F-150 Lightning brand name seems a bit risky if the Lightning fizzles.
“The public pays for the losses regardless.”
Only if the public buys the new ICE cars.
The only ones that want EVs are governments and the governments don’t use them ,LOL
Talk to any EV owner who has taken a long trip.
You’ll grow a long beard waiting for them to get back ,LOL
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