Ford violated one of the main rules of any company that sells products to consumers: listen to what the consumer wants. The number who wanted EVs was low. And do not sell at an overall loss
Ford Loses $1.3 Billion on Electric Vehicles in First Quarter of 2024, Delays Plans to Make More
Ford Motor Company reported a whopping $132,000 loss on each electric vehicle (EV) sold during the first three months of 2024, amassing a $1.3 billion loss.
The auto manufacturer’s electric vehicle unit revealed Thursday that they experienced a 20 percent decrease in sales volume and were forced to slash prices due to low consumer demand, CNN reported.
The revenue for Ford’s EV car, the Model e, plunged by 84 percent to about $100 million, which the company blamed on EV price cuts across the auto industry.
“That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit,” the publication noted.?
The recent figures are part of a trend of loss for Ford, with their Model e reporting a full-year EBIT loss of $4.7 billion on the sale of 116,000 units. This is an average loss of $40,525 per vehicle — and even that is just a third of the per-vehicle loss seen in the first three months of 2024.
Now, company officials are estimating that their EV division will lose a grand total of $5 billion this year, up from $4.7 billion last year.
There’s nothing wrong with Ford making EVs: there is a demand for them, even if small. But, they moved too far too fast, far exceeding demand, leaving them with lots and lots of inventory that couldn’t be moved. And leaving dealers with expensive burdens on their lots, which they were forced to purchase from Ford.
“Americans don’t want EVs at levels Biden’s climate hysteria require,” author and businessman Andy Puzder wrote on X. “Ford’s EV Q1 losses soared to $1.3 billion — a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity.”
Well, yeah. After the initial interest in the “Mustang” that died down, and many sold them off and get a gas vehicle, either straight petrol or hybrid. And, quite frankly, it’s often difficult to get people into a hybrid. Heck, it’s still sometimes the money. When my lease is up next April the Civic hybrid will be here. I’ll look at the lease values of it and the straight petrol versions. I drive less than 10K a year, so, unless the hybrid lease price makes sense I’ll just stay with the regular.
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Again, keep sharp objects away from Johnny…
What’s their plan to recover from losing $132K per vehicle? VOLUME!
Good thing .gov gave the EV crowd over $30 Billion of our money last year or they’d be losing their shirts and we’d be watching the entire industry getting bailed out, AGAIN. The Bob Lutzs of the world knows what side their bread is buttered on, but they also understand that the EV market should never have been subsidized or rushed to provide a make-believe political win to anyone. The whole EV/renewable push is backfiring and it’s dragging down actual good ideas with it.
Here’s a novel concept, how about dropping the “Big brother knows what’s best for you and we can prove it” routine and allow manufacturers to get back to making, selling and standing behind products that the consumer actually wants?
Yeah, not gonna happen.
.gov elite’s want you to do as they say, believe what they say and live the way they say. So they subsidize and legislate the outcomes they want and outlaw the stuff they don’t. Just pass the law and it’s so, right? Uhm, no. That’s not how the real world works but they don’t live in the real world.
And so it goes. At least the factions that want to burn it all down seem to be getting their wish.
We’re doomed.
Yesa, I live in a rural area, but I spotted my first Ford F-150 Lightning yesterday, parked outside the local Mexican restaurant. That makes a whopping two plug-in electrics I’ve seen locally.
There are no commercial vehicle charging stations in our county.
If Ford has been doing what the other automakers have been doing, their ICE vehicle sales have been subsidizing EVs which is why ICE vehicle prices climbed so much.
80% of Tesla owners have no waiting time to recharge, they charge at their homes overnight when rates are lowest
Consumer Reports recently published a 10 year study which brands have the lowest repair costs over years 0 to 5 years and 5 to 10 years. Tesla had THE lowest repair rates. In the first quarter of 2034 Tesla Mod Y held its #2 spot as the best selling passenger car sold in America.
It may very well take Ford and other legacy car builders 5 years playing catch up to Tesla. Tesla also lost big money in its first years.
EVs including plug in and hybrid were 17% of total light duty vehicle sales in USA
That percentage will continue to increase
Battery technology continues to improve. the new Honda flagship can give 65 miles of range in 10 mins
Any comment on that Mr Teach ?
Funny. The article is about FORD losing $132,000 on EACH EV they produced in ONE QUARTER!
Those are Rimjob type losses and hookah boy johnnie wants to talk about Tesla owners charging their vehicles at home.
Puhleese!
Such losses with EV’s everyone loves and charges at night when costs are lower. Imagine what the losses would be if consumers didn’t want EVs.
Tesla Mod Y was the #2 selling passenger car in the USA
Toyota Rav 4 a much cheaper vehicle was #1
Most Tesla owners charge overnight at their homes.
Some early models are still grandfathered to charge for free at Tesla superchargers
Others may charge for free and get preferential parking at some commercial places
The cost to recharge an EV is often so low that supermarkets install free chargers to attract customers
And on a sad not for ICE lovers, Jeremy Clarkson if TOP GEAR. and WORLD. TOUR just announced his disbelief in Global Warming was all part of his comedy act.
Consumer Reports just said that Tesla is the brand with the lowest repair costs over 1 to 5 years and 5 to 10 years.
So, no super high tire costs or battery replacement as was posted here. Remember the entire motor of a Tesla is only about as big as a crock pot.
Dana probably Ford was not really counting on selling many F150 Lightnings in poor rural areas. Not really much of a potential market there
H, are you really dumb or do you work for Tesla?
80% of Tesla owners have no waiting time to recharge, they charge at their homes overnight when rates are lowest
Tesla sold about 200,000. So 40,000 people have to wait. How about the 200,000 of the other manufacturers?
Consumer Reports recently published a 10 year study which brands have the lowest repair costs over years 0 to 5 years and 5 to 10 years. Tesla had THE lowest repair RATES.
Rates are not costs. Bullshit much???
In the first quarter of 2034 Tesla Mod Y held its #2 spot as the best selling passenger car sold in America.
Bull shitting again by ignoring what people buy. And that’s pickup’s.
Battery technology continues to improve. the new Honda flagship can give 65 miles of range in 10 mins
And in 10 minutes I can fill my car for 450 miles of non stop driving…
https://evadoption.com/ev-sales/evs-percent-of-vehicle-sales-by-brand/
So basically you agree with us we should be able to buy whatever kind of car we want. Thank you for catching up. For a while there you sounded like some kind of a dumbass absolutist where everybody’s gonna have to drive EV’s.
It’s also good to see you supporting the economic well-being of a good republican a good republican company like Tesla and Elon. About time you stop inhaling all that propaganda and started listening to people that know what they’re talking about.
The above reply was meant for H not Mr. Lewis.
Tesla as ldo lost billions before becoming very profitable
All new manufacturers of EVs must expect losses in the beginning
But
Prices of EVs are dropping rapidly every month. Batteries have greater range and faster charging again every month .
Gas prices are going up every month in spite of the fact that the yuS is pumping more oil than under Trump. Drill baby drill???? Only results in higher profits for oil companies as they are happy to export fossil fuels to whomever will pay the most. No discount for domestic customers! Profits come first
So Johnny-somehow Ford doesn’t have all the info about batteries? That’s funny. And prices tend to drop when the amount of sales goes down, as in EVs
And you’ve still never answered the question-why should EVs have to be mandated if they’re so good?
Has H ever mentioned which EV he owns?
I would tender the thought that Ford dove into EV’s in order to develop it’s technology and plan for the future. As well as a little virtue signaling. They are still profitable based on their ICE vehicles, pickups and sport utes. They are paying a dividend. Tesla may be making some profit, but what there is is being reinvested in the company. Still not paying dividends. Rivian is gaining but not close to being profitable. Profits are the fundamental purpose of a business.
I don’t own an EV and don’t see owning one in my future, simply not practical for us. I do own equities in several EV companies and follow them in order to know about that market. Charging and range remain fundamental problem issues, not to mention cost. Here, north of Houston, charge stations are getting easier to find and Tesla Superchargers are getting more available. Most of the EV’s seen are Teslas,Fords, and Rivians. Spotting other EV’s is somewhat like bird watching.
EV’s just aren’t ready for prime time.
Carbon boy-apparently Hertz hasn’t heard about your “prices are dropping, battery technology improving” mantra that you repeat every week, either. I wonder why? Several days ago they decided on selling 10,000 more EVs than they originally planned, now up to 30,000. Maybe contact Hertz head quarters and tell them all your good news about what’s going to happen in “the future” with batteries. Looks like they didn’t get the memo…
Looks like they didn’t get the memo…
You think??