Diana Furchtgott-Roth, an economist at the Heritage Foundation, discusses the electric vehicle market as more automakers withdraw from EV production.
With the promotion of electric vehicles (EV), ford profit margin The company is trying to find the right combination between profitable vehicles that consumers want today and next-generation EVs that may be in high demand as market preferences change in the future.
The company’s EV division, Ford Model E, had a net loss of $4.7 billion last year, $1.6 billion of which was a net loss in the previous quarter, Ford Chief Financial Officer John Lawler said in Tuesday’s earnings report. At the press conference, he explained: The year was affected by difficult market trends and investments in next-generation vehicles. ”
Lawlor added that Ford expects losses to widen in the range of $5 billion to $5.5 billion due to “continued pricing pressure and investments in next-generation vehicles” for the Model E. “We look forward to improving the performance of our first-generation vehicles,” the company said. You can earn profits throughout the year. ”
of The Wall Street Journal points out If Ford sold Mustang Mach-E and F-150 Lightning vehicles but also didn’t invest in the next-generation EVs that will eventually replace them, the company’s adjusted operating income would be about 50% lower than it is today. They say it will be expensive.
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Ford lost about $4.7 billion on EVs last year and expects to lose about $5 billion to $5.5 billion in the division this year. ((Photo by Scott Olson/Getty Images)/Getty Images)
Ford CEO Jim Farley said on the company’s earnings call Tuesday that the EV market has experienced “seismic change” in the last six months of last year, and that “winners and losers in the industry are rapidly being separated.” Stated.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| F | ford motor corporation | 12.82 | +0.03 | +0.23% |
He said the reason for the change was EV manufacturer It will reduce prices by 20% across key markets and infuse investment and production capacity into the two-row crossover segment.
Farley said Ford’s goal for next-generation EVs is to be profitable within 12 months of launch, and to focus these models on “geography and product segments where we have an overwhelming advantage.” This will reduce the cost of manufacturing larger EVs. Like a truck or van. ”
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Ford plans to focus its next-generation EV efforts on models that are expected to be profitable within 12 months of launch. (Jeff Kowalski/AFP via Getty Images/Getty Images)
“These products will have breakthrough efficiencies compared to our first-generation products and will be packed with innovations that customers will be willing to pay for,” he said. He added that there will be more focus onof small EV.
Farley said Ford “made a quiet bet” two years ago and brought in “a very talented Skunk Works team to create a low-cost EV platform” to help roll out multiple vehicle types. He explained that he has developed a flexible platform to Software and services.
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“All of our EV teams are extremely focused on the cost and efficiency of our EV products, as our ultimate competition will be affordable Teslas and Chinese OEMs,” he said. . “Given market realities, that bet and capital adequacy, and even delaying some products, will lead to a better balance of growth, margins and revenue for our company.”
