Ford will lose $3 billion on electric vehicles in 2023, it says
Enlarge / Ford is tripling the production rate of the F-150 Lightning EV this year. (credit: Ford)
There's no doubt that Ford is embracing electrification. It was first to market with an electric pickup truck for the US market, and a darn good one at that. It has a solid midsize electric crossover that's becoming more and more common on the road, even if it does still upset the occasional Mustangophile. And there's an electric Transit van for the trades. But its electric vehicle division will lose $3 billion this year as it continues to build new factories and buy raw materials.
The news came in a peek into Ford's financials released this morning. As we reported last year, Ford has split its passenger vehicle operations into two divisions. Electric vehicles fall under Ford Model e, with internal combustion engine-powered Fords (including hybrids and plug-in hybrids) falling under Ford Blue. The move was in large part to placate investors and analysts, no doubt starry-eyed during a time when any EV-related stock was booming.
"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," said Ford CFO John Lawler. "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."