Published , by Donovan Erskine
Published , by Donovan Erskine
Ford has put a strong effort into producing more electric vehicles as it works towards the long-term goal of being fully electric. These efforts continued to ramp up last year, as Ford debuted the F-150 Lightning and increased production. However, Ford’s EV business did not turn a profit. In fact, it lost $2 billion on its EV division, but those losses were offset by some strong performance from other aspects of the company.
Ford announced this week that it took a $2 billion loss on its electric vehicle division in 2022. This doesn’t come as a surprise, as Ford faced a lot of economic and production hurdles over the course of the year. Because of the high cost of batteries, Ford raised the price on EVs like the F-150 Lightning and the Mustang Mach-E. Luckily for Ford, its legacy vehicles and other operations accounted for $10 billion profit, offsetting its electric vehicle losses.
This year, Ford will break up the different pillars of its business and have them report results separately. On the Ford Media Center website, company leadership talks about the motivation behind this decision.
“We’ve essentially ‘refounded’ Ford, with business segments that provide new degrees of strategic clarity, insight and accountability to the Ford+ plan for growth and value,” CFO John Lawler said. “It’s not only about changing how we report financial results; we’re transforming how we think, make decisions and run the company, and allocate capital for highest returns.”
Ford may have eaten a loss on its EVs in 2022, but that won’t deter the company from working towards its stated goal of being fully electric by 2035. As we continue to follow the latest business moves at Ford and the rest of the electric vehicle industry, stay with us here on Shacknews.