|
Getting your Trinity Audio player ready...
|
Shouldn’t the shareholders intervene at some point?
Last time I checked in, Ford had lost billions making electric ‘cars’ that no one wants.
“Ford reported that it’s going to lose $3 billion on electric cars in 2023. Unlike most automakers, Ford reports its electric vehicle numbers separately, but experts estimate that most car companies are losing similar amounts on the dead end business.”
“Ford plans to make 2 million electric cars every year by 2025. That would be impressive considering that Ford only sold 61,575 of them in 2022. It sold 3,624 electric vehicles in Feb 2023.”
Ford said the higher loss projection for Ford Model e reflected “the pricing environment, disciplined investments in new products and capacity, and other costs.” Ford also now expects to reach a 600,000-unit EV production run rate during 2024, instead of the end of this year, on the way to achieving a 2 million annual run rate.
Earlier this year, Ford issued press releases hyping 285,291 sales in 2024. This is far short of its projections, but at least it’s growth.
The actual numbers however were under 100,000 actual EVs sold while 187,000 or so were hybrids.
All of this was dwarfed by over 1.7 million in actual cars sold.
How much did this incredible ‘success’ story with EVs cost Ford? $5 Billion. No, Ford didn’t make $5 billion selling EVs. It lost $5 billion.
Ford’s electric vehicle and software business lost $5.1 billion in 2024, up from $4.7 billion lost in 2024. And the automaker doesn’t anticipate any relief this year, when it predicts it will lose as much as $5.5 billion on its EV business.
To be sure, Ford’s gas cars are still doing great, continuing to bring in enough revenue for the company to end the year in the black. The company reported a full-year net income of $5.9 billion and an adjusted earnings of $10.2 billion.
In short, Ford is using its actual car business to finance a ‘progressive’ money-losing electric car business. And it’s doubling down.
Enjoy the Axios distillation of Ford’s rationale.
More and more mainstream car buyers can’t afford to buy a new Ford, which sells for an average of $56,000.
At the same time, Chinese carmakers have figured out how to make inexpensive, high-quality, digitally advanced EVs, and they’re quickly taking over the world.
It’s only a matter of time before those Chinese cars arrive in the U.S.
Building affordable EVs profitably is a lot harder without consumer tax credits and other EV-friendly policies killed by the Trump administration.
Let me see if I get this straight.
Ford’s cars are too expensive for American consumers. So Ford is going to dive into EVs, which are even more expensive, and Ford needs to dive in before the Chinese start importing cheap EVs and destroy the business it lost some $20 billion developing?
I’ve seen better business arguments for MLM schemes.
At some point Ford’s shareholders need to intervene before the money runs out and the progressive politics kills another great American company.
“At the same time, Chinese carmakers have figured out how to make inexpensive, high-quality, digitally advanced EVs, and they’re quickly taking over the world.”
No, they haven’t got the high quality part down. You should look into the tofu-dregs that are the Chinese EV’s.
If people knew the truth about Chinese EVs and how and where they’re made, they wouldn’t be so quick to praise them.
But alas, most Americans don’t give a crap about slave labor or the environmental destruction Chinese EV manufacturers are inflicting on the environment in several countries. As long as they have access to cheap Chinese made products, they don’t want to know the and don’t care.
For the sake of profits and sating the appetite of American consumerism, the Chinese, et al, are literally willing to destroy the planet. But again, most Americans don’t care and don’t want to know. Don’t bother them with the truth about Chinese made products. Just STFU and keep the supply of cheap Chinese products coming.
like the rest of the Chinese junk, it holds up well enough to get to market and an initial driving experience
western consumers just have to be reeducated to view a car as a 1-2 year purchase
many of us will just reset to 1973, in less than a year my friend’s Dodge Duster fender grooves next to the hood had rusted through-saw a practically new Charger with similar rust channels on the top front of the car both sides
Daniel,
You do realize that the IDF just banned Chinese Communist Cars from their bases, right?
https://www.jns.org/report-idf-bans-chinese-cars-from-bases-to-prevent-data-leaks/
https://www.israelnationalnews.com/news/412797?utm_source=chatgpt.com
“At some point Ford’s shareholders need to intervene before the money runs out and the progressive politics kills another great American company.”
Just over half of Ford stock is held by institutional firms. E.g. Investment companies like Blackrock. They represent millions of people through mutual funds, 401Ks, IRAs, etc. But Blackrock,etc. votes the shares, not the individual investors. Many of those investors are leftist. You and I can vote our perhaps hundred or thousand shares of personally held stock while Blackrock votes its +300 million shares.
Bryan:
Institutional investors buy multiple million of shares of Ford stocks simply for the quarterly dividends the stock pays. The actual stock price fluctuates within a very narrow range over long periods of time but is inconsequential to the number of shares held. In other words, quarterly dividends is how the money is made in owning shares of Ford; not in the price of the stock. Moreover, mutual funds, 401Ks, IRAs, retirement funds, etc, have a fiduciary responsibility to invest mainly in dividend paying stocks. Otherwise, they are gambling with other peoples money for which there are onerous liabilities and legal consequences if the bet goes wrong.financial
An individual investor would never by Ford stock unless they buy it in tranches of a million shares or so. To the majority of individuals investors, the stock of companies like Ford aren’t worth buying for the reasons previously stated. Thus as an individual investor., there’s no money to be made in owning Ford stock.
Thus your claim that “many of those investors are leftist” lacks merit and/or credibility. It’s akin to saying that anyone who owns stock in Alphabet Inc (Google’s parent company) is a leftist.
I’m a capitalist and have been a stock market investor since 1992 (tech and banking stocks.) I’ve amassed a small fortune over the years so I think I know a thing or two about the stock market and market investors. I’ve never known or met a leftist who was also a capitalist. The two are antithetical.
“Moreover, mutual funds, 401Ks, IRAs, retirement funds, etc, have a fiduciary responsibility to invest mainly in dividend paying stocks.”
You have no idea what you’re talking about. I don’t care if you made money in stock market or not. They’re all kinds of different funds with different stated goals. Have you ever heard of a growth fund and many other types of funds that do not have income as a state goal? You obviously don’t know much about the advantage of long-term capital gains. You are just another person talking about things you don’t understand.
Let’s hope it leads to the demise of the Ford Foundation as well, the funder of a myriad antisemitic, anti Israel groups and causes.
Henry Ford unabashedly hated Jews.
They have no ties to Ford Motor you moron.
Henry Ford founded it, you moron. and Ford motors donates to it
I had an amusing thought while reading Ford’s EV sales over the two years of 2022 and 2023.
I have $$$ invested than the EVs that Ford sold, given these numbers.
My problem with an EV is the limited mileage and the charging time. Plus there’s the ever present dangers of dendrites forming in lithium ion batteries and the costs of replacement ($10k +)
If I had to drive approx. 800 miles, I can do that in a gas powered vehicle in about 9 – 10 hours and perhaps 3 stops for gasoline. Given the charge time for an EV and presuming there EV charging stations along the way, how long would it take to drive that 800 miles in an EV?
And if there was a catastrophic event that caused a regional or nationwide power outage. people with EVs will be screwed 24/7 and twice on Sunday.
Meanwhile, me and my gasoline powered vehicle? All I’ll need is a siphon hose and several good size (5+ gal) gas cans!
And there’s no infrastructure for EVs. And without a garage you can’t charge one at home, and electricity costs much more than gas.
Ford. Found On Road Dead. Failure Of Research and Development. For Only Retarded Drivers. Flipped Over Roadside Disaster. Fork Over Repair Dough. Frightening Old Rickety Deathtrap. Flat Out Refusing to Drive. Fast Only Rolling Downhill. First On Recall Day. First On Rust and Deterioration. Flintstone Or Rubble Driven. Frequent Overhaul Rapid Deterioration. Free Or Reduced Drastically.
One has to assume that any company supported/owned/controlled by the communist government will somehow be a cheat and swindle. It’s part of the DNA in any communist system. The goal is never to make a high quality product at a responsible price……there is always an underlying reason, and it’s generally market control related. Never buy anything from a communist country should be our motto.
There is some reason with the rhyme. It’s not just that all these car companies are committing senseless woke suicide, it’s that they have misplaced their bet on when the future starts.
It may or may not happen soon but solid state batteries will give EV’s further range than a conventional tank of gas, incredible long battery life, relatively fire free with 10 minute charging times. People will buy them for convenience. The only public company producing true solid state batteries is SLDP, important because true solid state erases most of the fear of fire, but auto companies and other public and private companies are likely closing in on the technology, one of note QS.
There are other problems, the heaviness of the cars and winter weather remain limitations.
Companies are SUPPOSED to do their best to make a PROFIT and the MAXIMUM PROFIT possible! Ford’s Management is NOT doing what it is supposed to do and is costing it’s INVESTORS money! I don’t have stock in Ford, but if I did I’d be raising holy hell to get rid of whoever is responsible for pursuing the ev insanity! You can be a “do gooder” with your OWN money, but investors deserve better!
So dose Ford want to go the way of Nash ,Studebaker, DeSoto Rambler Etc. So are they going to redesign the Edsel?
My step father had a Rambler when I was a kid. A big white station wagon. It had a huge engine.
My dad bought his first new car in 1955, a Studebaker Commander. He traded it in 1963 for a Chevy Impala, but regretted loosing that old Studebaker for years.
I think Studebakers were cool looking.Reportedly they were quality cars, and so were nashes.
My fav was 1953 Study, but 55’s were a close second. Big engine, 260 HP when Chevy and Ford were pushing 170.
A HS friend of mine had a Nash Rambler. 1st car with front seats that laid back with the touch of a lever.
The stupidity of EVs in general is only outdone by letting a declared enemy make them for you.