2012 Ford Expedition on 2040-cars

Auto blog

Ford Model e losing billions as it says EV unit should be seen as startup

DETROIT — Ford Motor Co.'s electric vehicle business has lost $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 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% 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-generation electric vehicles. It currently offers three EVs for sale in the U.S.: the Mustang Mach E SUV, the F-150 Lightning pickup and an electric Transit commercial van. The new corporate reporting system, Lawler said, is designed to give investors more transparency than the old system of reporting results by geographic regions. The automaker calculated earnings for each of the three units during the past two calendar years. Model e had pretax losses of $900 million in 2021 and $2.1 billion last year, and it is expected to lose $3 billion this year. In the past two years Ford has announced it would build four new battery factories and a new vehicle assembly plant as well as spending heavily to acquire raw materials to build electric vehicles. By the end of this year, the company based in Dearborn, Michigan, expects to be building electric vehicles at a rate of 600,000 per year, reaching a rate of 2 million per year by the end of 2026. Ford Blue, the unit that sells internal combustion and gas-electric hybrid vehicles, made just over $10 billion before taxes during the last two years. Ford Pro, the commercial vehicle unit, made $5.9 billion during those years, the company said. For this year, Ford expects Ford Blue to post a $7 billion pretax profit, modestly better than last year. Ford Pro is expected to earn $6 billion before taxes, nearly double its earnings last year, Lawler said. Ford was to present the new structure, announced last March, to analysts and investors on Thursday.

Question of the Day: Most degraded car name?

When Ford came up with a not-so-sporty version of the Pinto and slapped Mustang badges on it in 1974, that was a low point for the Mustang name. When Chrysler applied the venerable Town & Country name on perfectly functional but unglamorous minivans, it saddened many of us. But perhaps the biggest demotion for a once-proud model came when, in 1988, General Motors imported a misery-enhancing Daewoo from Korea and called it the Pontiac LeMans. The original Pontiac LeMans was a great-looking midsize car with fairly advanced (for the time) suspension design and engine options including potent V8s and a screaming overhead-cam straight-six. The Daewoo-based Pontiac LeMans was a cramped, shoddy hooptie that served only to ruin the LeMans name forever, while stealing sales from the Suzuki-based Chevrolet Sprint. Sure, using the once-respected Monterey name on the Mercurized Ford Freestar was bad, but Mercury didn't have long to live at that point. I say the downward spiral of the LeMans name was the most agonizing in automotive history. What do you think? Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Auto News Ford Mercury Pontiac Automotive History Classics questions ford pinto names

Ford stops JV work In Russia, Stellantis donates to Ukrainian refugees

Russia’s invasion of Ukraine is obviously killing civilians and destroying infrastructure throughout the country. ItÂ’s also affecting the auto industry there and across wider Europe, from the wiring harnesses we mentioned earlier today to new announcements from Ford and Stellantis. And thereÂ’s reason to think in bigger terms than todayÂ’s business deals, since there are massive lithium deposits in the ground in Ukraine. What this means for raw materials for future electric vehicles canÂ’t yet be determined, but itÂ’s worth thinking about as the world reacts to RussiaÂ’s actions. Following decisions by Apple and other major automakers to stop or otherwise curtail activities in Russia, Ford announced that it will suspend all of its joint venture operations in Russia, effective immediately, until further notice. “As part of the global community, Ford is deeply concerned about the invasion of Ukraine and the resultant threats to peace and stability,” the company said in a statement. “The situation has compelled us to reassess our operations in Russia. In recent years, Ford has significantly wound down its Russian operations, which now focus exclusively on commercial van manufacturing and Russian sales through a minority interest in the Sollers Ford joint venture.” Even though Stellantis only has 71 employees based in Ukraine, it announced today it will donate 1 million euros (around $1.1 million U.S.) to Ukrainian refugees and civilians. StellantisÂ’ head of operations in Ukraine will help the automaker work with local non-governmental organizations that are supporting Ukrainians to get the funds where they need to go. “Stellantis condemns violence and aggression and, in this time of unprecedented pain, our priority is the health and safety of our Ukrainian employees and families,” Stellantis CEO Carlos Tavares said in a statement. “An aggression that shook a world order, already unsettled by uncertainty, has been launched. The Stellantis community, made of 170 nationalities, looks with dismay as civilians flee the country. Even if the scale of casualties is not yet apparent, the human toll will be unbearable.” As of this morning, Stellantis said all of its 71 employees there were safe. This is not a normal line to read in automotive press releases, but this is not a normal time.