Ford has announced its first-quarter 2023 earnings. According to sources, the American automaker’s EV activities appear to be losing money, while ICE and commercial vehicle sales are keeping the company profitable for the time being.
The American automaker disclosed the earnings of its three divisions: Ford e, Ford Blue, and Ford Pro. Ford e is in charge of the brand’s electric vehicles and digital connection, Blue is in charge of ICE-powered passenger vehicles, and the brands Pro is in charge of commercial vehicles.
According to earnings reports, Ford e lost $700 million in the first quarter of 2023, despite only registering 12,000 EVs.
This equates to a loss of $58,333 every electric vehicle sold in the first three months of 2023. This compares to the brand’s revenue in the first quarter of 2022, which was $1.6 billion.
The loss is due to lower volume as a result of scheduled downtime at the company’s Mexican facility, which manufactures the Mustang Mach-E. The interim shutdown will aid in increasing the plant’s output to 2,10,000 tonnes per year by the end of this year. The carmaker is also alleged to be losing money in order to scale production. The automaker is claimed to have spent $3.5 billion on its battery plants in Michigan and Tennessee, which would create the company’s next-generation electric truck with a capacity of 500,000 units per year in 2025.
Ford Blue, on the other hand, posted a 2.6 billion gross income in the first quarter, lead by the F-150. The automaker is also the leading truck manufacturer in America, producing one every 30 seconds. This, paired with Ford Pro, enabled the automaker to turn a profit with a net income margin of 4.2%. In addition, the automaker anticipates a $3 billion operational loss for EVs in 2023. However, with plans to improve production and facilities, the business is optimistic that things will improve in the coming years.
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