Ford now expects its EV unit to lose $4.5 billion, 50 percent more than it previously forecast, citing “the pricing environment, disciplined investments in new products and capacity, and other costs.”
Additionally, Ford on Thursday delayed some of its planned EV production goals. It now expects to hit a 600,000 EV production run-rate some time in 2024; it previously planned to do so by the end of this year. And Ford no longer is forecasting when it plans to hit 2 million EVs annually, while it previously expected to hit that goal in 2026.
Still, Lawler said its EV profit goals remain the same: 8 percent margins in 2026.
“While the shift to EVs is unquestionably underway, the last few weeks have shown us that adoption by early majority customers will be a little slower than the industry expected,” Lawler said. “This is not going to be a straight line, there’s going to be some bumpiness as we move along.”
It increased its 2023 earnings forecast for Ford Pro from $6 billion to “approaching $8 billion,” which would be more than double that unit’s profit last year. Ford also said it expects to make about $8 billion at Ford Pro, up from prior guidance of $7 billion.