Ford Loses $100,000 on Each Electric Car It Releases (1 photo)

In the first half of Joseph Biden's presidential term, who promised US citizens to fight inflation by subsidizing the purchase of electric vehicles, Ford Motor Company enthusiastically began to convert its product range to electric traction. Now it is losing $100,000 on each electric vehicle produced. This was reported by Bloomberg, citing its own anonymous sources.



In the first quarter of last year, Ford suffered losses of $50,000 for each electric vehicle produced, and a year later they doubled to $100,000. If things continue like this, Bloomberg predicts, then by the end of the current year, losses from the production of electric vehicles will almost completely offset the profit from the production of Ford cars with internal combustion engines.

During an April meeting with analysts, Ford management explained that the company is not able to reduce costs proportionally to the fall in prices for electric vehicles. At the same time, the company promised to do everything possible to reduce costs in the electric vehicle business as much as possible by the end of the current year. One of the options for overcoming the crisis is the production of affordable small-sized electric vehicles in the price range of $25,000, which will enter the market in 2026 and will be able to provide a profit from their sale already in the second year of sales. Ford management is striving to make the company's electric vehicle division self-sufficient so as not to depend on the classic business of producing cars with internal combustion engines.

According to Bloomberg, Ford is reducing the purchase of traction batteries from its suppliers, which include SK On and LG Energy Solution, as well as the Chinese CATL. Ford expects to post a $5.5 billion loss in its electric vehicle business for the year, but is seeking to cut $12 billion in core expenses. As a result, new EV models will be released less frequently, the pace of construction of new plants will be slower, and the company will also have to lower prices for its products in this segment. Representatives of the three battery suppliers mentioned told Bloomberg that their contracts with Ford are continuing to be fulfilled, although they did not comment on possible changes to their terms.