Ford adjusts EV & hybrid vehicle manufacturing & sales goals

Ford’s second quarter results show aims to quadruple HEV sales, Model e revenue up 39% & 600K EV run rate goal adjusting to 2024, Jim Farley, CEO reports

Ford has adjusted expectations going into the second half of 2023. The automobile giant’s second quarter results report that, whilst revenue from the first generation electric vehicles have increased nearly 40%, it expects its EV business to lose about US$4.5bn this year.

“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” said Jim Farley, Ford CEO.

“Ford+ is making us more resilient, efficient and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22%) and EBIT margin (15%).”

Adjusting EV price and manufacturing in line with consumer activity

The report reveals that Ford was America’s top-selling brand in the quarter, and revenue from Ford Model e’s first-generation electric vehicles — including the F-150 Lightning and Mustang Mach-E— increased 39% in the second quarter.

Ford aims to quadruple hybrid vehicle sales in the next five years, alongside attempts to reduce the cost of its first-generation battery electric vehicles, which overall continue to draw losses.

The company lost US$32,000 on average on EVs delivered by Model e during the second quarter, and forecast a full-year loss of US$4.5bn on the Model e unit — 50% higher than projected.

"We're not shying away from our EV plans," John Lawler, Ford’s Chief Financial Officer confirmed. 

"This is not going to be a straight line. There's going to be some bumpiness as we move along."

Previously, Ford has been aiming for a production rate of 600,00 EVs a year by the end of 2023, however that is now expected in 2023. 

Looking to the future of electric vehicles 

The company uses lithium iron phosphate battery packs to cut manufacturing costs and promote strength in the supply chain, avoiding dependance on materials prone to shortage.

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” Farley sasys. 

“EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”

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