To prepare for electrification, Ford has invested huge sums of money in electric vehicles. From now on, the American manufacturer will divide its activities into three structures: Ford is blue (thermal and hybrid cars), Ford Pro (communal transport), and Ford Model E (electric cars).

This latest division, in which we find the Mustang Mach-E and F-150 Lightning, as well as the upcoming Ford Explorer, has no good news to announce. Indeed, Ford electric vehicles must generate a 3 billion dollars in losses (€2.77 billion) this year, and this trend should continue over the next few years.

Electric cars: big investments

In total, the Ford Model E should accumulate at least $6 billion (€5.54 billion) in losses between 2021 and 2023, including $2.1 billion (€1.94 billion) less than last year.

Of course, this deficit is connected with important investment manufacturers to prepare for the transition to electric vehicles, and will have to wait a few more years before returning to the path of profitability.

The introduction of the electric car should help increase production rates for Ford, which should be able to produce 2 million electric cars every year from 2026, when the electric division should return to profitability.

Electric cars: future benefits

However, in 2023, the manufacturer with the blue oval should reach a profit target of 9 to 11 billion euros.

If the electric division (Ford Model E) will experience a strong deficit, the other divisions should contribute up to 7 billion euros (Ford Blue) and 6 billion euros (Ford Pro) to the company’s profit.

In the next few years democratization of the electric car will reduce costs, especially for batteries, to make it more affordable. This is an important condition for electric car manufacturers to finally be able to return to profitability.