Ford expects to lose $3 billion from EVs this year

Ford is preparing itself to take a big hit with regard to its electric vehicles (EVs) this year, claiming it will lose approximately $US3 billion ($NZ4.8 billion).

The figure is an increase over the $US2 billion ($NZ3.2 billion) loss its all electric ‘Model e’ business sustained in 2022 due to the carmaker ramping up production and increasing investment into the technology.

Regardless, Ford is still targeting a profit between $US9 billion and $US11 billion ($NZ14.4 billion and $NZ17.6 billion) before interest and tax expenses have been applied. This is thanks to its internal combustion engine and commercial vehicle arms Ford Blue and Ford Pro.

It seems then that the American carmaker is playing the long game with it planning to spend around $US50 billion on EVs between now and 2026, according to Bloomberg.

This involves the production of new plants to build the vehicles including its newly-built facilities in Kentucky and Tennessee.

Ford’s CFO, John Lawler, said people should be looking at the carmaker’s EV endeavour as a startup business.

“Ford Model e is an EV startup within Ford, as everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share,” he said, reports Automotive News Europe.

Come 2026, Ford expects its EV business to hit the green with an 8 per cent profit margin thanks to production of the vehicles projected to increase to 2 million units per year.