Reuters reported that Ford Motor Co said it expected its electric vehicle business unit to lose $3 billion this year.
On a better note, the company did say though that it remained on track to achieve a pre-tax margin of 8% by late 2026.
The projected loss was revealed ahead of a briefing for investors and analysts on 23 March to discuss details of the automaker’s new financial reporting format.
Starting with first-quarter results, which will be announced on 2 May, Ford will begin reporting by business unit for Model e (electric vehicles), Blue (combustion vehicles) and Pro (commercial vehicles and services).
Ford projects Model e’s cumulative three-year loss from 2021-2023 at $6 billion, including a pro-forma loss last year of $2.1 billion, but expected the unit to be profitable on a pre-tax basis before the end of 2026.
Chief Financial Officer John Lawler said Ford would no longer break out financial results by region, only by business unit, because “that’s how we’re running the company now”.
He said Ford would provide quarterly and annual sales and market share for the company’s top five global markets but would no longer report by region.
Last year, Ford had a pre-tax loss of $600 million in China, broke even in Europe and posted a modest $400 million profit in South America, with most of its earnings before interest and taxes - $9.2 billion - coming from North America.
The company expected its Ford Pro commercial vehicle business to nearly double pre-tax profit this year to $6 billion, while the traditional Ford Blue business should see a modest increase to $7 billion.
Lawler reaffirmed the company’s target of a 10% adjusted EBIT margin by late 2026.
He said the automaker would have the global capacity to build 600,000 electric vehicles by the end of 2023 and 2 million by late 2026 - “and we intend to fully use that capacity”.
South Africa’s motorists and automotive sector are facing a fresh layer of uncertainty as the Middle East conflict continues to disrupt global oil markets, but for now the country’s fuel supply remains stable even as costs rise.
Stellantis has struck a five year strategic partnership with Microsoft as it accelerates its shift towards software defined vehicles and digital services.
Auto China 2026 marks another milestone in the evolution of an event that has tracked China’s rise from emerging market to global automotive powerhouse.
Advertisement
Advertisement
Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?
George Carlin
Geely Auto has lifted the curtain on a new hybrid technology that it believes can redraw the balance of power in a segment dominated for decades by Japanese brands.
As fuel prices continue to place pressure on South African consumers and businesses, DFSK South Africa has introduced an LPG Autogas conversion solution aimed at reducing operating costs and improving vehicle efficiency across its petrol range.
Toyota Motor Corporation and Isuzu Motors are stepping up plans to bring hydrogen power into Japan’s light‑duty truck market, confirming a jointly developed fuel cell model scheduled for production in the 2027 financial year.
