We admit that our EVs ARE NOT PROFITABLE, and that we are re-engineering them “on the fly.” Does anyone else think this will not end well for Ford?
“We actually had a positive bottom line profit when we launched the Mach-E, commodity costs have wiped that out,” Chief Financial Officer John Lawler said Wednesday at the Deutsche Bank Global Automotive Conference, referring to 2020, when the vehicle went on sale. “You’re going to see pressure on the bottom line when we launch our EVs, they’re not going to be positive.”
Even so, Ford sees “a lot of opportunity” to take costs out of the Mach-E and other EVs, such as a future mid-size SUV, Lawler said. The company has said it’s re-engineering the vehicle on the fly to improve its margins.
The company also has boosted prices on the Mach-E this year, he said, without giving specifics. But the model, which Ford is recalling for a defect that could cause it to stop running, now costs $25,000 more to produce than an equivalent gas-powered Edge SUV, he said.