Ford Motor Co. posted an additional $1.2 billion in losses related to electric vehicles (EVs) in the third quarter, according to a press release Monday.
The company’s net income also fell to $900 million, down $300 million from Q3 2023. According to Go to press release. The loss was primarily due to EV-related costs of $1 billion, according to the release.
Ford’s full-year earnings before interest and taxes (EBIT) is expected to be about $9 billion for the Ford Pro, but the company’s EV division, the Model E, is expected to post a full-year loss of about $5 billion. . release.
“With Ford+, we are in a strong position as our industry undergoes fundamental transformation,” Jim Farley, Ford president and CEO, said in a release. “We have made strategic decisions and taken tough actions to give Ford an advantage over our competitors in key areas such as Ford Pro, international operations, software and next-generation electric vehicles. Importantly, over time, bending the cost and quality curve, which is a key focus for our team, will result in significant financial improvements.”
The U.S. automaker is trying to incentivize buyers to buy EVs amid a struggling market, announcing in September that it would give customers free EV chargers and household equipment.
Ford lost $4.7 billion on EVs in 2023. The company previously reported a loss of $1.3 billion in the first quarter of this year, and announced in August that it would cancel plans to build a three-row electric SUV.
BRISTOL, UK – MARCH 5: The Ford Motor Company logo is displayed on the front grill of an electric Ford Transit being charged at a dealership in Bristol, UK, on March 5, 2023. Founded by Henry Ford and incorporated in 1903, Ford Motor Company is an American multinational automobile manufacturer that has been family-owned and operated for more than 100 years. (Photo by Matt Cardy/Getty Images)
The Biden-Harris administration is promoting the expansion of domestic EV manufacturing as part of its clean energy policy. President Joe Biden previously set a goal of installing 500,000 public EV chargers across the United States, but the plan has been met with various delays. (Related: U.S. auto sales remain below pre-pandemic levels)
Ford and other U.S. automakers face fierce competition from China, which continues to dominate the EV market. Mr. Farley recently admitted that his company was operating EVs made in China, even though the company received billions of dollars for domestic EV production.
Ford pointed to Monday’s earnings call when asked for comment by the Daily Caller News Foundation.
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