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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.

Living Life Large: Driving $2 million worth of cars in one week

Monterey Car Week has quickly become one of my favorite events of the year. There's something for everyone – classic car shows, modern concepts and new vehicle debuts, auctions, racing, and so much more. From a media perspective, there's also a chance to drive a ton of cars. Many automakers bring their latest wares out to Monterey for us to test during our limited free time, and it's a great opportunity to experience fantastic metal against a gorgeous backdrop. That's exactly what I did this year. Instead of flying into Monterey and being driven around, my journey started in Los Angeles and ended in Napa, and I managed to get behind the wheel of some $2 million worth of new cars. Some were old favorites, and many were new experiences. But looking back, this was one of the best weeks of driving I've had in years. Rather than try to come up with some common arc to tie these cars together, here are my notes on all the cars I tested in California earlier this month, presented in the order in which they were driven. 2016 Mazda CX-3 The CX-3 pictured here isn't the exact one I drove in California, but it's close. The only difference was color – my delivered-to-LAX tester wore Mazda's awesome new Ceramic hue (pictured below on the MX-5 Miata). I used the CX-3 to slum through crummy Los Angeles traffic for two hours on the way out to Santa Barbara, with a quick stop at In-N-Out Burger on the way for good measure. A lot nicer inside than I remember. Everyone praises Mazda for its excellence in engineering and design, but there's a lot to be said for the improvements in overall interior refinement. Quiet, comfortable, and well-equipped; the CX-3 made sitting on the 405 freeway a lot more pleasant. Not all that functional. I had a hard time fitting a week's worth of luggage for two people inside. The cargo area and rear passenger compartment were filled, with only enough room on top to see out the back window. A Honda HR-V would've swallowed all that luggage with plenty of room for more. So good to drive. Not surprising, since this wasn't my first time in the CX-3. I knew this CUV would be good on twisty roads, but on the highway it's really exceptional. Road and wind noise are minimal and the overall ride quality is a comfortable sort of sporty. This is definitely something I could drive every day – it's enjoyable during commuting and entertaining on more interesting roads.

2020 Lincoln Aviator First Drive | The Real Deal

NAPA VALLEY, Calif. – We're in Yountville, a town that's equal parts hoity and toity. The restaurants are adorned with the names of Top Chef Masters and the gas station offers wine tasting. A store that exclusively sells Panama hats will be opening soon. It's in places like these where the 2020 Lincoln Aviator needs to be taken seriously. When the local bakery is a Bouchon, chances are the local populace isn't going to be fooled out of their Audis, BMWs and Mercedes by sub-standard merchandise. The Aviator needs to be the real deal.  It is. There is a sophistication to its engineering and driving experience, plus a distinctive, tasteful style that should collectively meet lofty expectations and attract the desired inquisitive responses from fellow Yountvillians. Indeed, this three-row luxury crossover is no half-hearted, badge-engineered effort as Lincolns of the past were. Though it shares its rear-wheel-drive architecture with the new Ford Explorer, the two differ greatly, and Lincoln's own engineers casually speak of the advantages of "developing their own platform from the ground up." As in, this platform is as much their baby as Ford's, and not something that was sent over from HQ with orders to slap on some different styling and call it a day. For instance, the front and rear suspension designs are different, in part to accommodate the Aviator's unique pair of available damping systems: standard adaptive dampers and an optional air suspension that's height-adjustable, load-leveling and reactive to input from a forward-facing camera to pre-set itself for bumps in the road. We only sampled the latter, and despite our test Aviator being shod in massive 22-inch wheels, it soaked up the gnarled pavement around Napa Valley with no nervousness over smaller bumps or impact harshness over bigger ones. It also doesn't bound about as the springy new Explorer does. The Aviator is impressively planted, even in its most comfort-oriented driver mode of "Normal," and possesses a composure that was not expected given Lincoln's emphasis on comfort, effortlessness and "quiet flight." 2020 Lincoln Aviator Interior View 9 Photos Indeed, the Aviator can be hustled quite capably around some pretty serious mountain roads thanks to the advanced suspension and inherent chassis balance afforded by its rear-drive-based architecture (all-wheel drive is optional).