Ford Says EV Unit Losing Billions, Should be Seen as Startup
DETROIT (NEWSnet/AP) — Ford Motor Co. is losing billions of dollars as the company heavily invests in its electric vehicle business.
Company officials said the electric vehicle unit, called “Ford Model e,” reportedly lost $3 billion before taxes during the past two years and will lose a similar amount this year.
Chief Financial Officer John Lawler said Model e should be viewed as a startup company within Ford, so losing money in the initial stages of development investment is expected.
Company officials say the unit will be profitable before taxes by late 2026, with an 8% profit margin.
Model e 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.
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.
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