Michael Bushabcher, a Boyden Grey Pllc partner, discusses concerns about an electric vehicle at the bottom line.
Ford Motor Company This week, it announced its fourth quarter's revenue, and while they were more than expected, the Detroit automaker is expected to announce losses in its electric vehicle (EV), which will continue this year.
Ford reported that EV sectionFord lost $ 5.1 billion in its all -year perspective for 2025. Ford said the pre -interest -and -tax (EBIT) profit expects $ 7 billion to $ 8.5 billion, with free cash flow between $ 3.5 billion and $ 4.5 billion and capital costs between $ 8 billion and $ 9 billion.
When Ford destroyed its various parts, the EBit detriment of $ 5 billion to $ 5.5 billion for the Model E. It will be offset by $ 7 billion to $ 8 billion from Ford Pro and $ 3.5 billion to $ 4 billion from Ford Blue and Ford's $ 2 billion tax revenue.
“We expect $ 5 billion to $ 5.5 billion for the Ford Model E to have lasting losses for the year.” “While industry pricing pressure remains, we intend to increase our global volume, which is due to the impact of all year of European launch, and we significantly invest in battery and next -generation battery and products. We increase ourselves, which are only two years away. ”
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The EV Ford, known as Model E, is expected to lose about $ 5 billion in 2025. (Alex Krass / Bloomberg through Getty Images / Getty Images)
In response to a question from a financial analyst, House pointed out: While the Ford Model's volume is over, there are about $ 1 billion in additional costs for its BOSK Battery factory And engineering for Generation 2 EV products.
| Tick | Security | The last | Change | Changing % |
|---|---|---|---|---|
| C. | Ford Motor Company. | 9.24 | -0.03 |
-0.27 % |
The house continues to discuss some of the factors that put pressure on this sector, as well as some positive developments at the end of last year.
“Some of the downward pressures you continue to see, this is potentially in Europe, potentially in North America,” he said. “Although it was excellent is Model E because last year Q4 ended, Mustang, we had extraordinary sales-it increased from 30 % in the quarter and we stayed higher than the average trading price. So , While we “see the pressure, we have done well with our Gen-1 products at the speed of our sales. “
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Ford Mustang Mach-E full electricity surpassed the traditional Mustang last year. (Josh Lefkovitz / Pictures of Gitti / Getlage Pictures)
Ford's declaration is subsequently EV initiatives of automakers In 2024, in the midst of consumer's lean demand, compared to past expectations and increased pricing pressure from competitors.
General Motors The sales and financial figures of their electric sector do not report separately like Ford, but General Motors's executives said the EVs of that year became “positive variable profit” by producing more sales money than work and material costs. However, this figure does not include fixed costs such as building assembly lines.
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Workers will gather the doors of vehicles at the General Motors Assembly Factory in Fort Vienna, Indiana on Tuesday, April 9, 2024. General Motors is scheduled to release revenue on April 23. (Photographer: Emily Elkin / Bloomberg via Giti Pictures / Giti Pictures)
GM CFO Paul Jacobson said last week that General Motors decreased from production and wholesale of 200,000 EVs in North America in 2024 and ended 189,000 units at the end.
Last year, Toyota announced that it is postponed to make plans to build EV in the United States by 2026, according to Reuters.
Volvo reduced its plan to reach all electricity by 2030 in September, as the Swedish car now plans to still have hybrid vehicles in production.
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Luxury car maker Bentley announced in November that it would return to transfer to a combination only from 2030 electric battery vehicles to 2035, adding that the product will continue to build a plug -in hybrid vehicles until then.
Reuters was involved in this report.