Ford Loses $1.2 Billion on Electric Vehicles Amid Ongoing Market Struggles
The Ford Motor Company announced on Monday that it has lost about $1.2 billion in the third quarter of 2024 due to its ongoing attempts to force the manufacturing and distribution of electric vehicles (EVs), despite minimal consumer demand.
As the Daily Caller reports, the auto giant’s net income fell by $0.3 billion compared to the third quarter of 2023, down to just $0.9 billion overall. The bulk of this was the aforementioned loss of revenue due to the EV push. Ford’s full earnings before interest and taxes (EBIT) for the year 2024 is expected to be about $9 billion total, thus meaning that the company has lost at least $5 billion over the course of the year.
“We are in a strong position with Ford+ as our industry undergoes a sweeping transformation,” said Ford President and CEO Jim Farley said in a press release. “We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software and next-generation electric vehicles. Importantly, over time, we have significant financial upside as we bend the curve on cost and quality, a key focus of our team.”
As part of a broader mandate by the Biden-Harris Administration for auto manufacturers to increase their lines of EVs, Ford has tried to incentivize consumers to buy EVs despite minimal demand. This included announcements in September that Ford would offer free EV chargers and home installations for customers who purchased such a vehicle.
In 2023, Ford lost $4.7 billion on its push for EVs. In the first quarter of 2024, Ford reported a loss of at least $1.3 billion; in August, the company announced that it would be abandoning plans to roll out three-row electric SUVs.
Despite the White House’s efforts to promote electric vehicles, Americans still overwhelmingly prefer regular, gas-powered vehicles, due to numerous performance and reliability issues with EVs. Biden’s vow to install 500,000 EV charging stations across the country has not come to fruition, with less than three months left before Biden’s term ends in January.
As the Daily Caller reports, the auto giant’s net income fell by $0.3 billion compared to the third quarter of 2023, down to just $0.9 billion overall. The bulk of this was the aforementioned loss of revenue due to the EV push. Ford’s full earnings before interest and taxes (EBIT) for the year 2024 is expected to be about $9 billion total, thus meaning that the company has lost at least $5 billion over the course of the year.
“We are in a strong position with Ford+ as our industry undergoes a sweeping transformation,” said Ford President and CEO Jim Farley said in a press release. “We have made strategic decisions and taken the tough actions to create advantages for Ford versus the competition in key areas like Ford Pro, international operations, software and next-generation electric vehicles. Importantly, over time, we have significant financial upside as we bend the curve on cost and quality, a key focus of our team.”
As part of a broader mandate by the Biden-Harris Administration for auto manufacturers to increase their lines of EVs, Ford has tried to incentivize consumers to buy EVs despite minimal demand. This included announcements in September that Ford would offer free EV chargers and home installations for customers who purchased such a vehicle.
In 2023, Ford lost $4.7 billion on its push for EVs. In the first quarter of 2024, Ford reported a loss of at least $1.3 billion; in August, the company announced that it would be abandoning plans to roll out three-row electric SUVs.
Despite the White House’s efforts to promote electric vehicles, Americans still overwhelmingly prefer regular, gas-powered vehicles, due to numerous performance and reliability issues with EVs. Biden’s vow to install 500,000 EV charging stations across the country has not come to fruition, with less than three months left before Biden’s term ends in January.
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