Ford thinks that its electric vehicle division will cause it to lose about $3 billion this year. Because of investments in manufacturing facilities in Tennessee and Kentucky and the use of different battery chemistries, the company is expected to lose more money. Ford told them the bad news during a conference call with reporters on Thursday morning. Ford thinks its Model e EV division will lose around $3 billion by 2023, up from $2.1 billion in 2018. Even though sales of the F-150 Lightning, a full-size electric pickup truck, and the Mustang Mach-E, an electric crossover, are going up, and the company is investing in expanding production, losses are expected to go up. Ford made this prediction during a conference call with reporters on Thursday morning. During the call, he discussed a new way of putting together financial reports. Ford Blue (gas/hybrid vehicles), Ford Model e (breakthrough EVs), and Ford Pro are all part of the new reporting structure (commercial vehicles). CFO John Lawler said, “We’ve basically “refunded” Ford with business segments that give the Ford+ plan for growth and value more strategic clarity, insight, and accountability than ever.” Not only are we changing how we think, make decisions, run the business, and spend money to get the best returns, but we are also changing how we report financial results. Lawler thinks Ford Blue will make $7 billion before interest and taxes this year, and Ford Pro will make around $6 billion. This will compensate for any electric vehicle (EV) segment losses. Lawler talked to reporters about why the Model e division is expected to lose money for the company. According to him, Ford has recently established a new electric vehicle (EV) company called Ford Model. It is common knowledge that electric vehicle (EV) startups incur losses in the process of investing in their capacity, knowledge, volume, and market share. Ford will keep spending money to make more electric vehicles, which will cause it to lose more money. The company plans to build a $3.5 billion lithium-iron-phosphate battery plant in Marshall, Michigan, two more battery-cell factories in Kentucky, and a third in Tennessee.
