Ford to lose $4.5 billion on EVs in 2023 but profit on ICE cars

Ford is expecting to lose $4.5 billion (US$3 billion) in its electric vehicle division this year, despite revenue rising from its combustion engine arms.

According to Automotive News, the American carmaker’s Model E division will suffer nearly 50 per cent more losses than last year due to heavy investments to boost production, develop next-generation models on dedicated EV platforms, and integrate the less expensive lithium-iron-phosphate (LFP) battery chemistry.

2

Meanwhile, Ford projects $10.5 billion (US$7 billion) in earnings before interest and taxes) from its Ford Blue internal combustion engine division, and around $9 billion (US$6 billion) from Ford Pro, which specialises in commercial vehicles – mostly dominated by diesel models.

This represents a nearly 3 per cent and 47 per cent improvement, respectively, compared to 2022 figures.

The news confirms that its conventional combustion engine-powered vehicles help fund investments in EVs amid tightening emissions regulations and incoming sales bans overseas.

However, Ford chief financial officer John Lawler told investors that its current first-gen EV models will be in the green by 2024 and labelled the Model E division as a 'fledgling startup'.

All up, the company will post $15.6 billion (US$10.4 billion) in expected earnings before interest and taxes, with $3 billion (US$2 billion) in net losses.

The Blue Oval currently sells the all-electric Mustang Mach-E SUV, F-150 Lightning ute and E-Transit commercial van overseas, with the Explorer SUV coming to Europe that’s based on Volkswagen’s EV platform to cut costs.

Locally, it doesn’t sell any pure EV yet. But, that’s about to change with the E-Transit expected later this year, and high hopes that the Mustang Mach-E will make its way to Australia soon.

⚡ More EV stories to help you choose the best car for your needs