Wed, 29 Nov 2023

Ford expects EV business to lose $3 billion pretax this year

Robert Besser
27 Mar 2023, 07:34 GMT+10

DETROIT, Michigan: In a briefing for investors and analysts this week, Ford Motor Co. reported that while its electric vehicle (EV) business unit remains on track to achieve a pretax margin of 8 percent by late 2026, it expects a loss of $3 billion this year.

Officials at the briefing also reviewed the details of Ford's new financial reporting format.

Ford will begin reporting by business unit for Model e (electric vehicles), Blue (combustion vehicles) and Pro (commercial vehicles and services), starting with its first-quarter results, which will be announced on 2nd May.

Ford expects the cumulative three-year loss from 2021-2023 for its Model e to be $6 billion, including a pro-forma loss of $2.1 billion in 2022, but it expects its first generation of EVs, including the F150 Lightning and Mustang Mach E, to be profitable on a pretax basis by the end of 2024.

"Ford will no longer announce financial results by region, only by business unit, because that is how we are running the company now," Chief Financial Officer John Lawler said, as quoted by Reuters.

"The company will provide quarterly and annual sales and market share for the company's top six global markets, including the US, China and Germany, but no longer will report by region," he added.

In 2022, Ford pretax losses in China was $600 million, but it broke even in Europe and posted a modest $400 million profit in South America, with North America accounting for most of its earnings, before interest and taxes, of $9.2 billion.

The company expects its traditional Ford Blue business to see a modest pretax profit this year of $7 billion, while its Ford Pro commercial vehicle business is expected to nearly double to $6 billion.

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