Ford forecasts a €2.7 billion loss for its electric car business in 2023, but this was expected.
The brand hopes that this unit will be profitable by 2024. In presenting its financial results for the first quarter of 2023, Ford divided its results into three business units : Ford Blue (internal combustion and hybrid cars), Ford Pro (commercial vehicles) and Ford Model e (electric vehicles).
Only the first two are profitable, while the last recorded a quarterly loss of 654 million euros and forecasts a loss of 2.7 billion euros for the whole year. However, Ford plans to achieve financial balance with its first generation of electric vehicles by the end of 2024.
Ford’s profits for the first quarter of 2023 amounted to 3.1 billion euros, a much better result than the previous year.
Although Ford Model e’s results are weak due to the heavy expenditure on plant development and conversion, Ford is confident about the future of this division and manages it as a start-up.
Ford also reduced the price of its Mustang Mach-E electric model in the US and France to boost sales.
To remember : In 2023, Ford forecasts a loss of €2.7 billion The brand’s electric cars will cause this loss Ford hybrids and commercial vehicles are doing very well and generating significant revenue Results are low due to: - Heavy plant conversion expenditure; - Development of factories to produce electric cars; - not enough green vehicle sales to compensate The production of electric cars will be managed as a start-up
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