The company still made a net income of $1.9 billion in the second quarter of 2023.
QUICK FACTS:
- The Ford Motor Company is expecting a $4.5 billion loss in the second quarter.
- The loss is almost twice as much as the amount lost on its electric vehicle (EV) division in 2022, during which the company suffered a loss of $2.1 billion.
- Ford’s commercial division earned $2.4 billion and its gas and hybrid division generated $2.3 billion, according to second-quarter results.
- In total, the company reported $45 billion in net revenue, leading to a net income of $1.9 billion across the second quarter.
- While Ford first said their 600,000-unit EV production rate will be achieved by 2023, the goal has been pushed back to 2024.
- It is unknown if the production changes will affect the company’s intention to produce 2 million EVs a year by 2026.
STATEMENT FROM CEO:
- Ford CEO Jim Farley said in a statement that “the last few weeks have shown us the adoption by early, majority customers will be a little slower than expected.”
- He added, “EV customers are brand loyal and we’re winning lots of them with our high-volume, first-generation products; we’re making smart investments in capabilities and capacity around the world; and, while others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
- “The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” Farley continued.
- “Ford+ is making us more resilient, efficient, and profitable, which you can see in Ford Pro’s breakout second-quarter revenue improvement (22%) and EBIT margin (15%).”
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BACKGROUND:
- On July 5, 2023, a coalition of 25 states challenged the Biden administration’s “radical regulations” on tailpipe emissions amid the push for electric vehicles, American Faith reported.
- The administration’s plan, which would dramatically accelerate the phase-out of gas-powered vehicles in favor of electric vehicles (EVs), has been met with fervent opposition led by Kentucky Attorney General Daniel Cameron and West Virginia Attorney General Patrick Morrisey.
- “This is the latest head-in-the-sand approach to achieving the left’s impossible green-energy fantasies. Government shouldn’t pick winners and losers, and an EPA rule that would kill gas-powered vehicles does just that,” Cameron stated.
- Cameron and Morrisey’s coalition consists of 25 states, including Alabama, Alaska, Arkansas, Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming.
