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Ford has reported that it lost $132,000 per EV that it sold in the first quarter of 2024. Quite shocking. But when you dig a bit into the numbers, it is even worse.
Ford had expenses (technically EBIT) of $1.3 billion in its Model E division, which manufactures its plug-in electrics, but only revenue of $100 million. It costs Ford 13x as much to make an EV as it can sell the car for. In other words, the value of the resources that they consume to make an EV is 13x the value that a customer will get out of it over its service life. How is that environmentally sustainable? Fortunately, they only sold 10,000 of these resource-destroying EVs in QI.
Compare this to their Ford Blue division, which manufactures internal combustion and hybrid vehicles for consumers. They sold 626,000 in the first quarter with revenue of $21.8 billion. They had EBIT of $905 million. This means that customers value each ICE or hybrid car at $1446 more than the resources Ford consumes in producing it.
Their Ford Pro division (commercial vehicles) does even better. It sold 409,000 vehicles in QI for revenue of $18.0 billion and EBIT of $3.o billion. Ford adds value of $7335 per commercial vehicle that it produces.
I was surprised that Ford sold 1,035,000 ICE or hybrid vehicles, or 103x more than the EVs it sold. I thought that EVs made up a larger share of the market.
None of the other major automakers break out the results of their EV divisions. Huh.
Discussion (57)
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Your fire photo was a Chevy.
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Yeah, it's a mystery.
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Oops. Oh well, they all look alike when charred, at least to my eye. I like that you put it in past tense, "was a Chevy."
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Breathtaking numbers. They should work for the government.
Oh, come to think of it, they do.
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It would really be interesting if they separated the hybrids from the conventional ICE cars. I'm sure they have the numbers. This is the kind of thing government does not want you to know.
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