Ford loses 3 billion on EV sales

Not surprised

I'm sure all their recalls aren't helping either.

Is investing in future technology count as a loss? I mean it sounds like they're talking about the investment in new plants marketing Etc. If they're just starting ramping up production on limited models, I'm sure its losing money right now.

Yup, during the investment phase you are expected to lose money. the question for me would be whether this includes engineering, tooling, etc. or whether it's just on sales of the cars - do they make money when they sell one, if we don't count the engineering costs? Is there an operational profit or a loss?

Let's not forget Tesla ran at a loss for what, ten years?

AceHanlon said:

I'm sure all their recalls aren't helping either.

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This really that much to do with recalls.
This is from their EV only division.
Most of the recalls are gasoline vehicles and that division made money.

codypet said:

Is investing in future technology count as a loss? I mean it sounds like they're talking about the investment in new plants marketing Etc. If they're just starting ramping up production on limited models, I'm sure its losing money right now.

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It does when you make separate accounting. But it really is an investment like you said.
Lack of investment is how FCA made great numbers.

It's Ford, they're masters at PR. I'm sure they'll make all the right moves.

I have a feeling most automakers are or will be in the same boat. Changing technology on such a grand scale costs lots of $$. ICE vehicles went through this in the beginning as well I’m sure.

Adventurer55 said:

It's Ford, they're masters at PR. I'm sure they'll make all the right moves.

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Ford isn’t just PR and they are far from perfect. But they’ve gotten and kept more loyal buyers the Chrysler has. PR doesn’t do that.
I’m interested if there were legal, financial, marketing, or a combination of reasons for the split.

Showing a loss has a lot of advantages. Especially when negotiating or paying taxes

Yup - this could well be a UAW-fighting tactic. Like shutting down the Cherokee plant without announcing new product.

Geez.

UAW tactic or not, Jim Farley should tread lightly. More of this and he will be fighting for his own job.

So if you read it all it’s not bad for Ford as a whole.
Ford EV list $3billion
Ford Blue (conventional car business) made $6.8 b.
Ford Pro made $3.2 b.
Ford Credit make $2.7 b.

Not going to search for it here but one article that popped up in my news feed said they only lost $2 Billion!

plymouth1 said:

Not going to search for it here but one article that popped up in my news feed said they only lost $2 Billion!

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Well then, that’s a bargain!!

Keeping in mind building a factory now is what, $2 billion?

No kidding. It's all new tech and has the entire new development price tag on the vehicles, platforms, architecture, designs, tooling, etc, etc.

The EV division doesn't have older tech, designs, or engineering to coast on to keep profitability up. Why do you think Sergio ignored EV development entirely and instead tried to merge with another automaker that already had sunk the money into development?

Also, why do you think STLA still hedges its bets on new vehicles by continuing to sell the old outgoing models alongside the new ones? (1500 Classic, Grand Cherokee, etc)

valiant67 said:

It does when you make separate accounting. But it really is an investment like you said.
Lack of investment is how FCA made great numbers.

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LOL.... But the early 70's A body worked

F150s Burn on Dearborn Factory Grounds

This is an issue with EVs that doesn't get mentioned much in the mainstream media.
Or maybe it has but I've missed it.

In the fire service we're concerned. E Bikes are all over the news in my area. But this shows that thermal runaway can and will affect EV batteries.