Ford's EV Q1 Losses Are Truly Impressive

DAVID BLACKMON
APR 26, 2024

In case you missed it, Ford Motor Company reported this week that it somehow managed to lose an impressive $132,000 per EV sold during Q1 2024. That is almost double the per-unit loss the company reported in Q2 2023, as calculated by our friend Robert Bryce.

That is not a typo, and I swear I am not making it up. Hell, even the Biden propagandists over at CNN have noticed the carnage at Ford caused by CEO Jim Farley’s EV incessant virtue-signaling and seemingly insatiable seeking of government rents.

Here’s an excerpt from that story:

Ford’s electric vehicle unit reported that losses soared in the first quarter to $1.3 billion, or $132,000 for each of the 10,000 vehicles it sold in the first three months of the year, helping to drag down earnings for the company overall.

Ford, like most automakers, has announced plans to shift from traditional gas-powered vehicles to EVs in the coming years. But it is the only traditional automaker to break out results of its retail EV sales. And the results it reported Wednesday show another sign of the profit pressures on the EV business at Ford and other automakers.

The EV unit, which Ford calls Model E, sold 10,000 vehicles in the quarter, down 20% from the number it sold a year earlier. And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model E unit.


Note the fact - which I’ve highlighted - that Ford’s EV revenue was down 84% from the previous quarter due not only to plummeting sales but also to deep price discounts. Those deep price discounts were required due to falling demand, which in turn resulted in huge inventories of unsold cars sitting not only at Ford’s plants but also in the lots of its hundreds of dealers around the country.

Note also the highlighted part about Ford being the only legacy carmaker that is brave - or perhaps a better word is ‘stupid’ - enough to break out its EV results as a separate line item in its quarterly results. Thus, while GM reported fairly strong results for Q1 this week, we can’t know how big its own EV-related losses are. GM did give us a clue when it said its quarterly profit was a result of ongoing strong demand not for EVs, but for its legacy internal combustion pickups and SUVs.

Oh.

Even before it announced these terrible results, Ford and Farley said in early April that it was shifting its strategic vision away from all-electric cars to introducing a new line of hybrid models going forward. Carney and his team had better hope the company’s board and investors are willing to swallow the folly they’ve already created with their EV virtue-signaling disaster and wait to see if they do any better by basically playing copycat to Toyota.

https://blackmon.substack.com/...rue&utm_medium=email

Let DEI and green initiatives take their toll.

I still don’t get why automakers aren’t pushing hybrid vehicles full bore over EV’s. They know damn well hybrids make the most sense; losing billions in profits certainly does not.

quote:

Originally posted by gearhounds:
I still don’t get why automakers aren’t pushing hybrid vehicles full bore over EV’s. They know damn well hybrids make the most sense; losing billions in profits certainly does not.

Maybe Ford should go talk to Toyota ?

quote:

Originally posted by gearhounds:
I still don’t get why automakers aren’t pushing hybrid vehicles full bore over EV’s. They know damn well hybrids make the most sense; losing billions in profits certainly does not.

I plan on buying a Prius for retirement to supplement the two 4Runners (which will most likely have 100k miles on them by then). It makes sense for running around, the price is reasonable and I know a couple people who've had close to 200k on their Prius with no major issues.

I am not confident Tesla will survive long term nor do I have confidence in any full electric model on the market.

We recently picked up a 2024 Prius for my wife to drive. She loves the styling of the new model and so far is averaging between 55 and 60 mpg. She does mainly around town driving. So far, so good!

Imagine the Feds forcing Private businesses to do something creating Billion$ in losses. Kinda like ObamaCare.

For all the grief that Prius drivers get, it is one of the most efficient vehicles you can buy. My wife drives one to work and to do errands. It is a reliable vehicle, is narrow and easy to park in compact parking spots, and the hatchback is convenient and easy for her to unload. A single 10 gallon tank of gas typically lasts 3-4 weeks for her driving around town.

I'd buy another Toyota hybrid or plug in hybrid without a second thought over a pure EV.

My neighbor is in the business, calls on dealers for services, said he was in the BMW, VW, and Hyundai stores yesterday.

They all have lots of EV's on the lots and nobody is buying them, everyone wants ICE, and when he talked with the senior management about the EV everyone without exception said, don't buy one, for a myriad of reasons from quality, to resale, price, I think even the high soaring Tesla stock has been hit, and they are dropping prices, adding things to the Model 3 like a new long range battery.

Even the middle east war with rising oil prices are not pushing people over the top, considering we're still lower than the post pandemic oil price problem.

For the EV mandate to work, the DC folks will have to either ban ICE, or create an oil crisis driving up the cost of oil

Now if you want an EV, it's the time to deal on them...

Our small town Ford dealer had four of the MachE and managed to move three of them, there is another small town Ford dealer about 30 miles from here that had 21 Mach E's on the lot. YIKES!

Ford made about as much on its line of heavy-duty ICE commercial trucks as it lost on its EV line. I sure hope that Ford management notices.

I agree that Toyota has the hybrid option down. Last time I looked the upcharge was only about $1800 for a hybrid RAV4.
Compare this to Jeep charging a $20,000 premium for their hybrid in the Grand Cherokee. No thanks!

I will say that all the negative comments about the Tesla EV’s are coming from those of you who don’t own one and have probably never driven one. I absolutely love my Model Y long range. Is it the be all end all? No, but as a member of our family fleet it is the one that gets driven most for everyday driving. We’ve had ours for a little more than six months and it has cost us less than $50 to charge in that time… with zero additional costs.

I don't understand what made these idiots think everyone was going all in on EVs, They either thought that everyone couldn't wait to trade in their gas powered clunkers or the government was going to mandate them right away.

quote:

Originally posted by sigspecops:
I don't understand what made these idiots think everyone was going all in on EVs, They either thought that everyone couldn't wait to trade in their gas powered clunkers or the government was going to mandate them right away.

Because of Biden and the EPA mandating zero emission vehicles.

I agree. They didn't do this JUST because they are idiots. They have been painted into a regulatory corner where this administration wants them.

Hybrids have always been a better choice across the board. Pure EV is a niche for upper strata of income earners. People who own houses with garages and can keep an extra car around for differing purposes. Ie, higher income people. My kids don't buy an extra car so they have a commuter car and a road trip car. That is nonsensical on many levels.

Hopefully this monetary pain makes people wake up and start pushing back on nonsensical EPA rantings that aren't law but have the effect of law, all without a single vote.

quote:

Originally posted by Lefty Sig:
Because of Biden and the EPA mandating zero emission vehicles.

And because the EPA is going to put in fuel standards that they can't meet with the current ICE vehicles as well.

CA mandating it is a big reason, it's a huge market for cars and if GM/Ford et al don't have them they can't sell there, won't matter anyway

Herr Newsome was in China sucking up to the communists with their EV cars, he'd be fine with Chinese cars over US cars.

The problem is, idiots like FORD will be in line for a Govt bailout if they keep pissing money down the drain like this. If so, we can only hope the are forced into Bankruptcy. The American people should not be stuck paying the bill of STUPID!!!!

Ford overall had a $4.3 billion profit for 2023.

they haven't lost nearly enough to cause them to stop this folly and go back to making just cars and trucks

I was just getting a haircut in my old fashioned non-trendy barber shop.

While waiting my turn I picked up a Motor Trend magazine. Way back in the day I subscribed to Motor Trend, Car & Driver, and others I can't recall now.

I always enjoyed these mags, they were thick (lots of pages of car stuff) and interesting articles. I also enjoyed the annual issue of the Car Of The Year reveal.

The new current issues are skinny like an anorexic teen. Much less pages, less articles, etc. Sucks.

The new 2024 Car Of The Year? Toyota Prius.

Not the Corvette, luxury SUV, sports car, etc. The Toyota Prius.

I agree with the above comments that a Hybrid car is the real answer.

But a Prius? Really? I'm old enough I'm from the famous Muscle Car era, big V-8 engines. If cars ever had a soul factor, it was back then.

I have a Camry gas car. Great car, but boring. It's like driving an appliance that never fails.

Sitting here shaking my head. Prius is a great car. I've been thinking of buying one for local driving for the reasons mentioned above. Nothing wrong with that.

There is a new car manufacturing plant company in OKC, Canoo. The Canoo electric cars are ugly. Awful. What's the fun in that? Who'd want to take a road trip in such a contraption of electrons.