Usually when a branch of a company is losing loads of money, it is usually spun off and some suggested Ford do just that in which the company refused.Ford Motor Co.’s electric vehicle business has lost $3 billion before taxes during the past two years and will lose a similar amount this year as the company invests heavily in the new technology.
The figures were released Thursday as Ford rolled out a new way of reporting financial results.
The new business structure separates electric vehicles, the profitable internal combustion and commercial vehicle operations into three operating units.
Company officials said the electric vehicle unit, called “Ford Model e,” will be profitable before taxes by late 2026 with an 8% pretax profit margin, but they wouldn’t say exactly when it’s expected to start making money.
Ford obviously doesn’t have any idea when their electric vehicle unit is expected to make money and justifies their expenditures by saying the branch should be viewed as a startup within the company. No doubt the company is getting kickbacks from the federal government to do this which is how their justifying their loses.
What’s more, this is another attempt to try to remake the wheel since Ford executives obviously cling to their idealistic vision regardless of the consequences. If you hold stock in Ford, it would be a good idea to sell them because this is not a winning proposition.
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