When you lose that much money on a product line, it’s time to ditch it. Ford Motors’ foray into electric vehicles has not been successful. Our economy and infrastructure generally are not meant for electric cars. Without a doubt, we could build the charging infrastructure that would permit cross-country travel, but that’s not the point of why these greenies buy the product: they think they’re saving the planet.
The irony is that you must burn fossil fuels to power the charging stations. And in some states, like California, it’s a quixotic venture since the government told its residents not to charge their cars out of fear of overloading the power grid, which always seems to blow up. Ford’s losses on their electric car project: $4.5 billion (via Fox Business):
Ford Motor Company announced it is projected to lose a whopping $4.5 billion from electric vehicles (EVs) this year, up from the previous projected loss of $3 billion.
The company released its second-quarter financial results on Thursday. The U.S.-based automaker's EV division, called "Ford Model e," has lost $1.8 billion so far this year, according to Fortune.
The projected $4.5 billion loss is over twice as much as Model e's $2.1 billion loss in 2022. The company recently announced that the price of its electric F-150 Lightning pickup trucks will be reduced due to cheaper raw battery materials.
The company touted that its low EV prices "establish[es] leadership ahead of industry’s next-generation EVs" and that the Ford Model e's revenue is up 39%. Ford is also expected to produce 600,000 EVs per year by 2024.
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The company still generates a massive amount of revenue in other parts of the company. Ford's second-quarter revenue was $45 billion, with a net income of $1.9 billion.
And therein lies why the company will continue this venture. It’s the ‘robbing Peter to pay Paul’ method. It’s a charity project. Customers are reportedly enthusiastic and brand loyal, according to Ford. But they’re not buying these junk cars, which will not fare well in inclement weather, especially when winter rolls around.
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