(WatchDogReport.org) – It is estimated that Ford will lose an estimated $3 billion by the end of 2023. The losses are mainly centered around the production and sale of electric vehicles (EVs). In March of 2022, Ford announced a split in operations. One division will focus on traditional gasoline vehicles, while another division will focus on the development and production of EVs such as the Mustang Mach-E SUV and the F-150 Lightning truck.
Ford’s website still has the option to order the F-150 Lightning, the first electric truck on the market, and touts the benefits of the EV. These include saving on fuel, a 320-mile range per charge, strong towing capacity, and the ability to use the truck as a backup power source for your home during power outages.
Buyers appear to be losing confidence in Ford’s electric vehicles. Several orders for the Lightning have been canceled, presumably due to price increases. In 2021, Ford announced a retail cost of under $40,000, but prices for the vehicle now exceed $60,000. Ford explained the increase stating that material costs have risen since the original estimate was announced.
In February of 2023, Ford announced a temporary halt in producing the F-150 Lightning trucks due to an unexplained potential battery issue discovered in pre-delivery quality inspections. Vehicles already on a sales lot were not to be held back and were authorized to be sold. Details of the potential battery issue have not been disclosed.
Ford recently released first-quarter earnings and details by division. Losses incurred on electric vehicles before interest and taxes totaled around $700 million. Only 12,000 EVs were delivered in the first quarter of 2023. These numbers show that Ford lost an estimated $53,000 for each EV sold.
Losses indicate that consumers have concerns. Price hikes, production halts, long waits for delivery, and safety and efficiency concerns appear to be at the top of the list.
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