That unit has lost $2.5 billion year to date.
They'll be at no less than $5 billion by EOY.
If you're in Model e I'd keep my resume up to date.
16 replies (most recent on top)
@2etb+1tLQRBqx nailed it.
The complete rewrite of the Connected Vehicle ecosystem many times over was wasteful. The cheeseburger eating LL3 from Atlanta wanted to put his stamp on it. When Azure to AWS failed he pivoted to GCP.
GCP saw us coming and made millions off of failed promises of timing. Yet no one got fired? Instead, cheeseburger promoted all of his buddies the drink cheap beer and eat junk food with him.
FnFs at it's finest.....
To be fair, the apple and Microsoft losers are likely hitting the same bureaucratic walls as the rest of us. Constantly changing priorities, upper MGMT so completely out of touch with employees and customers. Blah blah
It'd be great if they'd go after the really big MGMT problem before getting rid of us plebs. We're doing what they direct us to do and then they get mad when we aren't given the time and ability to do it properly.
The changes within Model e are unfortunately necessary, but current leadership is too inept to pull it off. They’re on what, the 4th or 5th brand new connectivity architecture? How many times are they going to reinvent unlocking a door remotely? Boomer Automotive management doesn’t understand software (like, that it can be changed), so they blame and layoff the developers who did exactly what they were told.
Heads need to roll starting with Farley and down through the entire connectivity space. Throw out the overpaid Apple and Microsoft losers who promised quick fixes but accomplished nothing. Invest in long-term local automotive domain experience. Start small, build slowly and reliably. Stick to the basics.
@1sxi Every time an executive has some half baked idea, the sycophants like you come out of the woodwork and praise the idea so that you can appear to be a team player. Do you remember when Hackett came out with his design thinking nonsense? The lapdogs jumped on it and trumpeted its gloryocity. How about Farley's autonomous vehicle crusade? The future was going to be ride hailing and ride sharing. How about Thyink!.... What happened to those? Colossal failures, every one. You people need to STFU, detach your lips from the c-suite's backside and crawl back under the rug where you belong. Let those more knowledgeable than the colon smoochers drive the company direction.
It's probably difficult for a lot of you to understand. Especially if you are plant or blue collar workers. Or even if you're a ground level engineer grinding each day. But Model e is the future of Ford Motor Company because the world is becoming more connected. The internet of things is real. And as we strive to become less dependent on oil, electrified powertrains are the most viable solution. Model e is focused on electrifying our portfolio and connecting those vehicles to the world around them. I would encourage each and every one of you to set your career goals to work toward a role within Model e.
DF is adjusting the Model e metrics to align with the changing market. It is the correct strategy to make Model e profitable.
Just keep that in mind.
For the Model e supporters, what is the timeline for profitability in that division?
DF has said many times that Model e profitability will come with the Gen 3 EV products. Well Gen 2 is pretty much wiped out with no path to production. So what does that mean for the timeline now? 2030? 2035?
No OEM allows an R&D "start-up" org to lose the billions on billions that Model e has lost. Oh tech firms do. But Ford doesn't have unlimited streams of ad and subscription cash coming in like the tech firms do.
It's unsustainable. Debt is already becoming a massive problem. Warranty costs are a massive problem. All analysts are predicting sales plummets in the 2nd half.
It's about to get really really ugly. And Model e is the ugliest of them all.
Model e is garbage and ugly. Ford Leaders are too d-mb to admit Ford's business structure is not cut out to make EV's or ever profit from making and selling them.
Ford leaders need a reality check, that ICE are what Ford makes a profit producing and selling. Enough of the Green Garbage.
On a related note, I can't wait to read that Ford issues hundreds of WARNs to employees working in Model e group.
Post ID: @web+1tLQRBqx is accurate. Don't forget Model e is a start-up company within the company, and it is not expected to be profitable this soon in its operation.
$2.5B is not that significant of a loss when you consider that.
The important point is that leadership and the BOD know Model e will be the prime revenue leader in the company and sooner than you think.
When the accountants spect you to lose $5 billion, you aren’t at risk unless you start to lose $5,000,000,001. Lots of large corps lose money in some divisions as part of an overall strategy cost. Model e is fine.
I am part of Model e, however my particular component is exclusively for a Ford Blue vehicle.
Not that I care about the distinction, i prefer to be offered whatever payout there is to leave and start the next chapter wherever that may be.
Model e, you should be ashamed of yourself!
https://qz.com/ford-ev-costs-50-000-1851608327
$50k lost on every EV.
Nice product. You guys are ki-ling the company.
If the 1974 Ford Pinto, reentered production at Ford with absolutely no updates to the 1974 design, including fuel tank location it would turn a profit at Ford before the Model e bucket of bolts ever does.
The bulk of that loss is due to the massive investment in the new battery plants in TN, KY, and MI. This is far different than operational losses that would be addressed with headcount reductions.
Agreed. Any of the Detroit 3 that are readjusting to the realities of EV market growth might be realizing they took too many resources from ICE and put too much into EV.