Ford's electric vehicle unit loses $3 bn, should be seen as startup
Ford Motor Co.'s electric vehicle business has lost USD 3 billion before taxes during the past two years and will lose a similar amount this year as the company invests heavily in the new technology.
The figures were released on Thursday as Ford rolled out a new way of reporting financial results.
The new business structure separates electric vehicles, the profitable internal combustion and commercial vehicle operations into three operating units.
Company officials said the electric vehicle unit, called Ford Model e, will be profitable before taxes by late 2026 with an 8 per cent pretax profit margin. But they wouldn't say exactly when it's expected to start making money.
Chief Financial Officer John Lawler said Model e should be viewed as a startup company within Ford.
As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build (sales) volume and gain (market) share, he said.
Model e, he said, is working on second- and even third-generatio