Ford: Electric car business also with big losses in Q1 2024

Ford will post a $1.3 billion loss from its electric vehicle business in the first quarter of 2024. Sales in this division fell 84 percent in the first three months of the year. Ford attributes this to “industry-wide pricing pressure.”

Sales in the electric Ford Model e segment increased by 86 percent to 20,233 vehicles compared to the same period last year. All electric vehicles experienced double-digit and in some cases even triple-digit growth rates. The Mustang Mach-E SUV had 9,589 units, the F-150 electric pickup truck had 7,743 vehicles and the light vehicle division, Ford Pro, accounted for 2,891 E-Transit (+148%). However, the manufacturer bought the growing sales of the Mustang Mach-E and the F-150 Electric by cutting prices in North America at the beginning of the year.

Ford is currently revising its electric car strategy: The traditional American automaker wants to focus first on smaller and cheaper cars. CEO Jim Farley announced in early February that they were working on a new low-cost electric vehicle platform.

According to reports, the brand is planning a small SUV, a small pick-up truck and possibly a third utility model based on the new design. The first model is scheduled to be launched at the end of 2026 and will cost around $25,000 – currently equivalent to around 23,300 euros, although in the USA car prices are quoted before taxes.

For the full year, Ford expects a loss of $5.0 to $5.5 billion for electric vehicles. The electric car division had already recorded a loss of $4.7 billion for the full year 2023, which is why the company has already cut investments.

At Ford Motor Company, sales across all divisions rose three percent to $42.8 billion in the first quarter of the year. Group EBIT decreased by 18 percent to $2.8 billion. The biggest contributor to this was not the Ford Blue combustion car business, but the Ford Pro van division with $3.0 billion and an EBIT margin of 16.7 percent.