Boyden Gray PLLC partner Michael Bushbacker discussed the concerns of an electric vehicle mandate on the lines below.
Ford Motor Company This week announced its fourth quarter earnings, and when they came up above expectations, the Detroit Automaker indicated a loss in its electric vehicle (EV) division, it is expected to continue this year.
Ford told that EV DivisionKnown as the model E, there was a loss of $ 5.1 billion in 2024. In its full year’s approach to 2025, Ford said that it expects $ 7 billion to $ 8.5 billion interest and adjusted earnings before taxes, with free cash flow between $ 3.5 billion and $ 4.5 billion and capital expenditure between $ 8 billion and $ 9 billion.
When Ford broke its various segments, it referred to EBIT loss of $ 5 billion of $ 5 billion for Model E. It is an offset of $ 7 billion to $ 7 billion from Ford Pro from $ 7 billion and $ 3.5 billion from Ford Blue to $ 4 billion, as well as earnings before taxes of $ 2 billion from Ford Credit.
Ford’s upcoming Chief Financial Officer Sheri House said, “We expect a loss of $ 5 billion to $ 5.5 billion for Ford Model E, stabilizing the losses year -on -year.” “While the pressure of industry pricing remains, we plan to increase our global volume inspired by the effect of the full year of European launch, and we have greatly increased investment in our battery facilities and next generation products, Which are just two years away. “
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Ford’s EV Division, known as Model E, is estimated to lose about 5 billion dollars in 2025. (Alex Crust / Bloomberg Getty Image / Getty Image)
In response to a question by a financial analyst, the House said that while the Ford models are volumes of E, additional costs related to its baskets are about 1 billion dollars. Battery factory And engineering for your generation 2 EV products.
| Langer | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | Ford Motor Cum. | 9.24 | -0.03 |
-0.27% |
The House discussed some factors to pressurize the division, as well as some positive developments at the end of last year.
“Some below pressure that you continue to see, it is potentially on pricing in Europe, possibly in North America,” he said. “Although it has been very good that the model E is because it ended Q4 last year, (Mustang) Mach-E, we had a spectacular sale-increase in more than 30% quarter in the Tamahi, and we average transactions Stay above the prices, while we are also performing well with our GEN-1 products in our sales pace. “
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All-Electric Ford Mustang Mach-E crossed the traditional Mustang in sales last year. (Josh Lefkovitz / Getty Image / Getty Images)
Ford comes after announcement Automkers EV initiative In comparison to the expectations of the past and the pricing from rivals, in 2024 fought between a sluggish consumer demand.
General Motors Like Ford does not report separately and financial data of its electric division, but GM officials said that its EVS became “variable profit positive” last year, which sales spent on the cost of labor and materials Used to generate more in revenue. However, that figure does not include fixed costs such as building assembly lines.
Vehicle manufacturer pushed back goals and plans in 2024
Workers collect vehicle doors at the General Motors Assembly plant in Fort Wayne, Indiana on Tuesday, April 9, 2024. The General Motors Company is scheduled to release income data on 23 April. (Photographer: Emily Elkinin / Bloomberg Getty Image / Getty Image)
GM CFO Paul Jacobson said last week that GM declined his target for production and bulk of 200,000 EVs in North America in 2024.
Last year, Toyota announced that it would postpone its plan for the construction of EVS by 2026 by 2026, as it was first targeted at the end of 2025, according to a report by a Reuters.
In September, Volvo abandoned his plan to go to All-Electric by 2030, as the Swedish automaker is still planning to keep a hybrid vehicle in production at that time.
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Luxury automaker Bentley announced in November that it would push back his plan for infection in the lineup of battery-electric vehicles only from 2030 to 2035, saying that it would continue to manufacture plug-in hybrid vehicles until that time.
Reuters contributed to this report.
