Thread regarding Ford layoffs

Ford admits EVs are not profitable, being re-engineered “on the fly”

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.

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Post ID: @OP+1hg9r9ty

7 replies (most recent on top)

Ummm. Edge? produit Canadien. And pricey for what it is.

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Post ID: @2asm+1hg9r9ty

Remember, this is even when paying Mexicans a fraction of what Americans make to assemble these rattle cans. That all Edge, made by American labor, costs so much less is very very telling.

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Post ID: @1nln+1hg9r9ty

May I add: european countries like to keep gas prices high with taxation.

  • For one they do that to decongest roads and traffic. European cities are OLD. The possible width of inner city roads have been set hundreds of years back.
  • Another reason is public transportation: it costs dearly, and it will have to be used to stay funded. And that will mean high taxes on vehicle operation.
  • Expanding charging infrastructure is very hard in EU cities. All power lines are underground for one. Suburbia doesn't exist like in the US and CAN. People don't have houses either, it's all apartments.
  • And lastly: most european economies are social democracies and therefore rely on massive tax income to redistribute amongst the people. So they have to keep earning that tax.

All in all: vehicle operation will never be cheaper than today. It's all a lie and you will end up paying plenty for your car, battery damage is on you and you'll be paying taxes to charge it.

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Post ID: @bme+1hg9r9ty

Besides the upfront purchase price of an electric vehicle, as the demand for electricity increases due to electric vehicles, the cost of electricity will increase. The needed infrastructure will not be free. This will inflate more than just your transportation cost.

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Post ID: @bny+1hg9r9ty

: @rji+1hg9r9ty Nobody doubts the day will come the market transitions to another type of propulsion (EV or Hydrogen). But let's get real here. Price of gas is up because Joe Biden ki---d the drilling and pipeline bills 48hrs into his presidency. Not because of Ukraine prices were over $3 long before the war. when it comes to EV you have not thought out the supply chain issues like where is the raw material coming from? GRID system. If they are talking about roaming brownouts in Mich / Calf. what do you think happens when you go and charge your car? You are looking at 20+ years before the market will even be close to being ready.

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Post ID: @tzp+1hg9r9ty

Previous poster - that math doesn’t hold water when you factor in that electricity prices are set to double and there are already plans to continually increase the charging station costs, free not being the future state.

Given Fords track record there will be high maintenance costs on any vehicle they produce.

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Post ID: @ezs+1hg9r9ty

An equivalent gas powered Edge is going to cost way more than $25k in fuel. In some areas gas is already over $7 average. Driving 230 miles per week (12,000 miles per year) costs about $3,500 over a year, with $7 gas.

The electric version will use as much electricity as regular gas-related maintenance cost on the Edge (brakes $600 every three years, oil change $300/year, $200 fuel injection cleaning every 2 years, $40 air filter/year).

If you keep your car for 7 years like an average person, the total costs are roughly the same.

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Post ID: @rji+1hg9r9ty

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