Ford has just presented quarterly accounts with horribly large losses. In fact, Americans lose 262,000 kroner on each and every electric car.
Ford's quarterly accounts reveal an unpleasant truth. Ford loses DKK 262,000 on every electric car they sell.
Although the brand increased its overall profit in the third quarter, electric cars continue to be a bleeding financial burden.
The transition to electric cars is a challenge for many established car manufacturers, and Ford is no exception.
The company has chosen to separate its electric car production into a separate company, and the results are disappointing. Despite a reduction in costs of DKK 10.6 billion and a drop in production costs for the Mustang Mach-E of DKK 35,000, Ford lost DKK 8.37 billion on the sale of 32,000 electric cars.
This corresponds to a loss of DKK 262,000 per electric car sold.
READ ALSO: Ford withdraws from Denmark
– We will continue to be focused on costs and become leaner as a company, says director Jim Farley.
Falling prices for electric cars and rising costs are contributing to Ford's losses. Earlier in the quarter, the brand had to abandon plans to launch a large electric SUV, which entailed additional costs.
Ford's profit in the third quarter is primarily due to the success that commercial vehicle division Ford Pro has had with sales of pickups and vans. The Pro department recorded revenue growth of 10 percent and a profit of just under 13 billion Danish kroner.
The high margin of 11.6 percent per car in the Ford Pro is something that most other car brands rightly envy. Volkswagen earns significantly below DKK 1,000. per car. Read more about it here .
Ford's quarterly accounts clearly show the challenges associated with converting to the production of electric cars. At competitor Stellantis, the economy is under such pressure that several legendary brands are threatened with closure. For Chrysler, it could be over in just two years. Find that story and many more here at Boosted.dk.
Read more exciting news from and about the world of cars right here!
