Ford Motor predicted a loss of around $4.5 billion for the second quarter of 2023, which is more than double the company's loss from its Model E division in the previous year. The electric vehicle division has been struggling to gain a foothold in the market. Despite this, Ford still managed to produce a profit of around $1.9 billion, with a revenue of around $45 billion.
Despite the disappointing earnings, Ford's commercial division was able to earn a healthy $2.4 billion. Its hybrid and gas division, Ford Blue, was able to earn over $2 billion. Jim Farley, Ford's CEO, expressed his optimism regarding the company's future electric vehicle plans, noting that the pace of EV adoption would be slower than expected.
According to Farley, Ford is winning over EV customers due to their first-generation products. He also noted that the company is working on new innovations that will be very exciting.
In 2024, Ford aims to produce 600,000 electric vehicles, and it hopes to reach a two-million run rate. It's worth noting that the company previously expected a loss of around $3 billion for its EV division, and it seems that there have been many twists and turns in the journey.
Ford Motor Company Projected to Lose $4.5 Billion on Electric Vehicles This Year
— The Daily Fetched (@DailyFetched) July 31, 2023
Ford laid off 3,000 workers earlier this year as it shifted to an all-electric vehicle strategy. With thousands of unsold electric cars on dealer lots, it's becoming more common for the public to question the purchase of an EV. Some of the factors that have caused people to hold off on buying an electric vehicle include the high price tag and charging concerns.
It's clear that Ford has encountered some difficulties in its efforts to establish an electric vehicle division. Nevertheless, with the company's loyal customer base and fresh developments in the pipeline, it is possible for Ford to continue its journey and emerge from these setbacks with a renewed sense of purpose.