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Ford expects to bleed $4.5 billion on electric cars this year, but makes enough on everything else

Discussion in 'Electric Vehicles (EVs)' started by T-Rex266, Sep 19, 2023.

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  1. Sep 19, 2023 at 6:53 AM
    #1
    T-Rex266

    T-Rex266 [OP] SpaceX Director Staff Member

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    Ford earlier projected that its electric vehicle division would lose $3 billion this year.
    July 28, 2023 7:08 AM EDT
    [​IMG]
    Ford CEO Jim Farley suggested on Thursday that a slower-than-expected adoption of EVs might help "early movers like Ford." Paolo Pedicelli—ATPImages/Getty Images

    Ford Motor Company turned heads in March when it predicted that its electric vehicle push could lose as much as $3 billion this year. Now the company is expecting to lose even more money from EVs, thanks to a slower-than-expected adoption of the new battery-powered vehicles.

    Ford is forecasting that its electric vehicle division will lose $4.5 billion this year, the U.S. automaker announced on Thursday. The division, called “Ford Model e,” has already shed about $1.8 billion in 2023 so far.

    The company is also pushing out its production targets, now predicting it will hit an annual production rate of 600,000 units a year by 2024. It had earlier hoped to hit that milestone by the end of this year.

    Still, the automaker has more than enough room to keep throwing money at electric vehicles. The company both reported a massive jump in net income and lifted its profit guidance for the whole year, thanks to strong results in its traditional and commercial vehicle segments.

    What’s happening in the EV sector?
    Demand for electric vehicles is growing at a fast pace, but not quite growing fast enough to meet increased production. Over 90,000 electric cars and trucks are sitting on dealer lots, a four-times increase from a year earlier, according to the New York Timesciting data from market research firm Cox Automotive.

    Ford is currently locked in a price war with other EV manufacturers, particularly the Elon Musk-led Tesla, which has slashed prices in both the U.S. and China to juice sales and capture market share. (Ford CEO Jim Farley credited Musk in late April for following a playbook established by Ford’s founder, Henry Ford).

    Last week, Ford cut prices on some of its electric cars, including the F-150 Lightning electric pickup truck, by as much as 17% on some models.

    Farley tried to play off the slower-than-expected adoption of EVs as a positive for “early movers” like Ford, suggesting that the company would be ready to sell cars to consumers once they were persuaded to go electric. “While others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” he said on Thursday.

    Another of Ford’s EV initiatives is also running afoul of geopolitics.

    In February, the company announced a surprise deal with Chinese battery company Contemporary Amperex Technology, or CATL.

    Ford will license CATL’s leading-edge battery technology for a new $3.5 billion plant in Michigan, scheduled to open in 2026. (CATL will also help set up the Ford-owned and operated plant, while basing some staff in Michigan permanently to help the U.S. automaker).

    Yet some in Congress have criticized the deal as a way to evade U.S. rules on who gets to receive electric vehicle subsidies, alleging that government money will be funneled to CATL. Farley and executive chairman Bill Ford traveled to Congress this week to meet with Congressional leaders on the issue, reports Reuters.

    Ford’s earnings
    Yet Farley and Ford can afford to be patient about electric vehicles, thanks to a strong performance in the rest of the company.

    Ford generated $45 billion in revenue last quarter, a 12% increase year-on-year. The company reported strong growth in its commercial vehicle segment, named “Ford Pro,” whose revenue grew by 22% to hit $15.6 billion.

    The automaker also earned $1.9 billion in quarterly net income, almost triple what it earned this time last year.

    Ford also increased its guidance on earnings before interest and taxes (EBIT) to between $11 billion and $12 billion, up from an earlier range of $9 billion to $11 billion. The company forecasts $16 billion in EBIT from its traditional and commercial vehicle segments combined, more than enough to offset the projected $4.5 billion loss from electric vehicles.

    “Startups lose money as they invest in capability, develop knowledge, build volume and gain share,” chief financial officer John Lawler said in March, back when Ford was expecting just a $3 billion loss from its EV division.

    Source
     
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  2. Sep 19, 2023 at 7:43 AM
    #2
    sask3m

    sask3m New Member

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    EV's are a joke right now. It's kinda like the cart before the horse.
     
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  3. Sep 19, 2023 at 9:21 AM
    #3
    nobodyintexas

    nobodyintexas What?

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    Whatever this forum told me to do
    EV's are a Judas Goat to another bailout.

    Can I just get a V8 Tundra with the 10-speed trans?
     
  4. Sep 19, 2023 at 9:56 AM
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    Metro14536

    Metro14536 New Member

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    Demand for electric vehicles is growing at a fast pace…..
    HAHAHAHHA now that’s funny
    :rofl::rofl::rofl:
     
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  5. Sep 19, 2023 at 10:02 AM
    #5
    nobodyintexas

    nobodyintexas What?

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    Whatever this forum told me to do

    well now..it is...if it's a Tesla.

    all the others, not so much.

    and Tesla demand will continue for a short while until we hit market saturation.

    and that's the rub. only Tesla is selling cars. the Gov abhors that.
     
    GODZILLA, NWPirate and T-Rex266[OP] like this.
  6. Sep 19, 2023 at 11:53 AM
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    blenton

    blenton New Member

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    What a great business model - sell stuff for a loss because they are told to offer a product that most people don’t want. Makes sense.


    :monocle:
     
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  7. Sep 19, 2023 at 12:42 PM
    #7
    NWPirate

    NWPirate *Not a Ubangy

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    I think that's more of a assumption that's being pushed out there and regurgitated.

    The typical EV charger roughly pulls 30-45 amps; the same as your oven. I haven't heard of any rolling blackouts on Thanksgiving day.. :monocle:
    Most people charge at night when household load is minimal.

    Now, it'll definitely increase the overall consumption but that's another topic.
     
  8. Sep 19, 2023 at 12:45 PM
    #8
    nobodyintexas

    nobodyintexas What?

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    Whatever this forum told me to do
    rolling blackouts would affect gas stations? no?

    better question...what happens when we start to fill the SPR? BOOM!
     
  9. Sep 19, 2023 at 12:50 PM
    #9
    NWPirate

    NWPirate *Not a Ubangy

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    Why yes, yes they would..

    :nuclear:
     
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  10. Sep 19, 2023 at 2:39 PM
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    RichterScale

    RichterScale I identify as a potato

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  11. Sep 19, 2023 at 6:35 PM
    #11
    Metro14536

    Metro14536 New Member

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    Assumption? You’re joking, right??
    Good lord
    And none of what you claim is remotely close lol but nice attempt
     
  12. Sep 19, 2023 at 6:51 PM
    #12
    NWPirate

    NWPirate *Not a Ubangy

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    Rolling blackouts aren't normal, so yeah that's an assumption that it'll become the "new norm".

    This will be fun, fact check me.. tell me specifically how my claims aren't remotely close.
     
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  13. Sep 19, 2023 at 6:54 PM
    #13
    Metro14536

    Metro14536 New Member

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    Here we go lol so you can lie about it all again? I’ll save my time :rofl:
    We all know who you voted for
    But hey why don’t we start with your oven comment. Never heard of anybody leaving their oven on for 12-15 hours a night
     
  14. Sep 19, 2023 at 6:58 PM
    #14
    ColoradoTJ

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    Oops
     
  15. Sep 19, 2023 at 6:59 PM
    #15
    Metro14536

    Metro14536 New Member

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    Someone is mad
    You too? Lol oops
     
  16. Sep 19, 2023 at 7:00 PM
    #16
    ColoradoTJ

    ColoradoTJ Certified tow LEO Staff Member

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    Well, now he has 30 days to fact check.
     
  17. Sep 19, 2023 at 7:02 PM
    #17
    GODZILLA

    GODZILLA Introverted Troglodyte

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    That's a pretty quick turnaround. I mean, Zach had barely handed him the rope and he had the noose tied and was jumping off the chair!
     
  18. Sep 19, 2023 at 7:04 PM
    #18
    ColoradoTJ

    ColoradoTJ Certified tow LEO Staff Member

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    Well, I was reading the post above his...

    I knew where this was going. Someone always has to make it about politics.
     
  19. Sep 19, 2023 at 7:05 PM
    #19
    NWPirate

    NWPirate *Not a Ubangy

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    Wrong, but that's funny
    I'm talking about the load spike when almost every house has their oven on for hours cooking the bird. Not to mention all the other appliances in the house running prepping for Thanksgiving, you never hear of rolling blackouts then.
     
  20. Sep 19, 2023 at 7:05 PM
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    GODZILLA

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    NGL, it's a factor, but there was much more to discuss that doesn't touch the no no zone. Especially with you and @NWPirate working in power generation.
     
  21. Sep 19, 2023 at 7:06 PM
    #21
    GODZILLA

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    He can't hear you...
     
  22. Sep 19, 2023 at 7:08 PM
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    NWPirate

    NWPirate *Not a Ubangy

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    Lol, bummer he had to go there. I was having some fun debating!
     
  23. Sep 19, 2023 at 7:14 PM
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    ColoradoTJ

    ColoradoTJ Certified tow LEO Staff Member

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    Most people's knowledge on the grid is when they turn the light switch on, light bulb aluminates.

    The last significant rolling brownouts in CO was caused my the plant I run in Feb '18. That was a nasty night and I was doing linework all night in that storm.
     
  24. Sep 19, 2023 at 7:36 PM
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    MTRock

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    Now imagine Thanksgiving x 4.. IE 4 cars in my household. Either cook the “Turkey” or charge an EV with an 80 mile range cause it’s -30 so the fam can go shopping? And the shopping is 110 miles away with 3 gas stations between and zero charging stations. It’s not anxiety it’s rural reality. Order everything online well that’s an argument for another day!
     
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  25. Sep 19, 2023 at 7:38 PM
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    NWPirate

    NWPirate *Not a Ubangy

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    Yeah, I'm honestly not faulting anyone for jumping on that black/brownout bandwagon. Especially with the media's doom and gloom perspective of the grid.

    CA and TX definitely have their T&D issues, no doubt about that. But I think the bigger issue of EV mandates will be residential panels that are already maxed out either on breaker space or service size.
     
  26. Sep 19, 2023 at 7:44 PM
    #26
    NWPirate

    NWPirate *Not a Ubangy

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    Yep, one car is not a big deal. Same here when my kids are old enough to drive, what a nightmare it would be to try and charge 4 cars every night. :annoyed:
    Hopefully we can actually keep our ICE vehicles and have an EV for when it's convenient to use.

    Totally against the mandates, I prefer the free market to sort things out.
     
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  27. Sep 19, 2023 at 7:59 PM
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    MTRock

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    And 2 of the kiddos moved out!
     
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  28. Sep 19, 2023 at 8:04 PM
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    NWPirate

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    :laugh:
     
  29. Sep 19, 2023 at 8:13 PM
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    ColoradoTJ

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    I agree. We have very little MW for 24/7. That's it. We are running tight. We just put in a request for 1500 MW for future development. 350 MW of gas turbine. The rest is solar/battery/wind.
     
  30. Sep 19, 2023 at 8:16 PM
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    gosolo

    gosolo You Don’t Know Who I Am But I Know Where You Live

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    Here’s some information:
    EVs are currently not realistic for cross country road trips. You have to locate charging stations in advance and plan for stays when you’re recharging. You need to download different apps to give you the location and (theoretical) condition of charging stations and plot your route accordingly. Even then, the information may not always be accurate; a station may still be under construction or may be broken when you arrive.
    For getting around big metropolitan areas, EVs can be pretty practical.
    There’s components in the EVs that are primarily supplied by china .
    There are metals in the production of batteries that are sourced from 3rd world countries using child labor.
    EVs can have battery malfunctions and burst into flames that are very difficult to put out
    I can’t even imagine taking an EV off road for any over night and long distance excursions.
    Most electric utilities do not have an infrastructure in place to accommodate everyone charging their cars. This is being addressed by smart meters and differential rates for off peak charging.
    There’s lots more, I am on the board of directors for our local electric utility
     
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