Ford is hoping to increase EV losses this year

Ford Motor Co. While it announced its fourth quarter revenue this week and surpassed expectations, Detroit automakers are projected to continue their losses in their electric vehicle (EV) sector this year.

Ford reported it EV Divisionknown as the Model E, lost $5.1 billion in 2024. With its full year outlook for 2025, Ford expects adjusted profits of $7 billion to $8.5 billion before interest and taxes (EBIT), with free cash flow of $3.5 billion and $4.5 billion. and capital expenditures of between $8 billion and $9 billion.

When Ford broke various segments, he pointed out that there was a loss of EBIT of $5 billion to $5.5 billion on the Model e. This is offset by previous profits of $7 billion to $8 billion from Ford Pro, $3.5 billion to $4 billion from Ford Blue and $2 billion from Ford Credit.

“We expect losses of $5 billion to $5.5 billion on the Ford Model E, and we hold a steady loss compared to the previous year,” said Ford, who is currently the company’s Vice President of Treasury. Shelley House, a person, said: “The industry’s pricing pressure remains, but we plan to substantially increase global volumes due to the year-round impact of European launches, and to battery facilities and next-generation products just two years away. We’ve increased our investment significantly.”

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In response to questions from financial analysts, House noted that while the volume of the Ford Model E is rising, the additional costs associated with Bosk are around $1 billion. Battery Factory Generation 2 Engineering EV products.

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House discussed some of the factors putting pressure on the department and some positive developments late last year.

“Some of the downward pressure you keep looking at, it’s in Europe and potentially in North America,” she said. “We had a great sales, Model E, (Mustang) Mach-E, which ended in the fourth quarter last year. It was up over 30% over the quarter, exceeding the average trading price. Looking at the pressure, I was They have continued to do well even after putting Gen-1 products at the sales pace.”

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Ford’s announcement will come later Automaker’s EV Initiative We struggled in 2024 amid slowing consumer demand compared to past expectations and increased pricing from rivals.

General Motors Like Ford, sales and financial figures for the electricity sector are not reported separately, but GM executives have been saying last year that EVs generate more sales revenue than they would spend on labor and material costs. said it was “various profits.” However, those numbers do not include fixed costs such as building an assembly line.

Automakers pushed back EV goals and plans in 2024

GM has not reached its target of producing, wholesale, and reaching 189,000 units in North America in 2024, GM CFO Paul Jacobson said last week.

Last year, Toyota announced it would postpone plans to build an EVS in the US until 2026 after previously targeting it in the second half of 2025, according to a Reuters report.

In September, Volvo dropped its plan to do its best, as the Swedish automaker is currently planning to produce the hybrid vehicles of the time.

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Luxury automaker Bentley announced in November that it would push back plans to move to a battery-electric vehicle-only lineup from 2030 to 2035, adding that it will continue to manufacture plug-in hybrid vehicles until then.

Reuters contributed to this report.