Ford Motor Co., like all American and European automakers, responded to the Biden administration’s electric vehicle push by investing billions of shareholder dollars in designing and manufacturing EVs that are not selling. And now, the company is paying a huge financial price.
According to CNN, the auto manufacturer’s electric vehicle unit disclosed on Thursday that it faced a 20 percent decline in sales volume and had to reduce prices due to weak consumer demand after the division lost $1.3 billion.
Due to industry-wide price cuts, revenue for Ford’s electric vehicle, the Model E, decreased by 84% to approximately $100 million. “That resulted in the $1.3 billion loss before interest and taxes (EBIT) and the massive per-vehicle loss in the Model e unit,” the outlet noted.
The recent data adds to Ford’s ongoing losses, as their Model e reported a full-year EBIT loss of $4.7 billion from the sale of 116,000 units. This translates to an average loss of $40,525 per vehicle—only a fraction of the per-vehicle loss observed in the first three months of 2024. Company officials estimate that their EV division will lose $5 billion this year, up from $4.7 billion last year.
“Americans don’t want EVs at levels Biden’s climate hysteria require,” author and businessman Andy Puzder wrote on X. “Ford’s EV Q1 losses soared to $1.3 billion — a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity.”
Americans don’t want EVs at levels Biden’s climate hysteria require. Ford’s EV Q1 losses soared to $1.3 billion – a ridiculous $132,000 per EV sold. All Ford’s profits came from combustion engine vehicle sales. Collectivist policies destroy prosperity. https://t.co/U24fA4YHTz
— Andy Puzder (@AndyPuzder) April 25, 2024
“This does not appear to be “sustainable,” added environmentalist Patrick Moore. Energy and environmental science expert Steve Milloy called Ford’s loss a “massive EV disaster.”
Ford has delayed production of two electric models and will focus on producing hybrid vehicles instead, the company announced earlier this month. “Many companies rushed in too fast with E.V.s that were too expensive and there was not as much of a market for them as they thought,” Sam Abuelsamid, transportation and mobility analyst at research firm Guidehouse Insights, told the New York Times. “That’s made it a lot tougher to sell those vehicles.”
Disclaimer: This article may contain commentary which reflects the author’s opinion.