Ford is holding firm to the idea that EVs are its future by going ahead with an ambitious growth plan despite losing money on every single electric vehicle it has made so far, and Lincoln may completely rethink its EV strategy. According to Automotive News, The Blue Oval recently warned that it would lose about $4.5 billion more than expected this year because of its EV business unit, called Model e.
However, it still plans to reach an annual build rate of 400,000 EVs, but not as soon as expected. The outlet reports that it will now happen sometime in 2024, rather than this year. We’ve previously reported that the automaker is delaying its plans to hit 2 million EVs per year indefinitely. Ford was initially supposed to hit that number in 2026.
“While the path to sustainable profitability may not look quite the same as we previously thought, we’re confident in our ability to deliver through a more efficient product design, cost efficiencies and growth in software and services, which will continue to accelerate,” Ford CEO Jim Farley reportedly said during the automaker’s second-quarter earnings call in July.
Still bullish, Ford still believes it will make eight percent margins on every EV in 2026. The big driver behind that is reportedly Ford’s second-generation EV platform that’ll serve as the underpinnings for a full-size pickup built in Tennessee and a three-row crossover built in Canada.
AutoNews says Ford CEO Jim Farley has asserted that the next-generation products are going to be less complex to assemble than Ford’s current EV lineup. They are also supposed to be more upgradeable with software that can — in theory — add to profit margins through subscription services.
Just because these new EVs are coming, does not mean Ford is kicking the current ones – the F-150 Lightning, Mustang Mach-E and E-Transit – to the curb. The outlet says they’re still supposed to play key roles, and Ford reportedly insists that demand remains strong even as inventories rise along with production.
“As we’ve demonstrated over the last several years, we will continue to be laser-focused on disciplined capital allocation and ultimately delivering a leading and profitable EV footprint that provides us with the flexibility to scale based on customer demand,” Farley reportedly said during the call.