Ford to idle F-150 Lightning EV plant in Dearborn for weeks

[Maineiac12]

https://www.freep.com/story/money/c...f150-lightning-ev-plant-dearborn/75961390007/

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[TaxmanHog]

https://media.ford.com/content/ford.../28/third-quarter-2024-financial-results.html

 

[Maineiac12]

https://media.ford.com/content/ford.../28/third-quarter-2024-financial-results.html

$5 billion model e loss? Ouch. I wonder if this plant production pause is for retooling or to slow production to line up with demand.

 

[Maxx]

$5 billion model e loss? Ouch. I wonder if this plant production pause is for retooling or to slow production to line up with demand.

Or may be they increased the production earlier because sales are up 86% this year but overshot and are sitting on a large inventory.

I am curious if they can address the loss by higher volume or they are actually losing money per unit aside from overhead.

 

[The Weatherman]

Fords loses are due to the amount of upfront infrastructure they have built out. Overtime it will allow them to reach profitability sooner. What they need is numbers. When the demand picks up, their cost to ramp up will be negligible.

It’s the demand we need to see change.

The other legacy ICE manufacturers have yet to spend what will be necessary to meet future demand.

Said another way, Ford has front loaded their major costs for EV production.

 

[Oafy44]

Fords loses are due to the amount of upfront infrastructure they have built out. Overtime it will allow them to reach profitability sooner. What they need is numbers. When the demand picks up, their cost to ramp up will be negligible.

It’s the demand we need to see change.

The other legacy ICE manufacturers have yet to spend what will be necessary to meet future demand.

Said another way, Ford has front loaded their major costs for EV production.

while agree with you on the upfront costs in what world does it cost $5 billion in losses per year? They wrote that off last year too no? Not too mention 21-22. A state of the art building for them and assembly line would cost no more then 1 billion and let’s just say it cost them 1 billion for a battery plant and $1 billion for R&R

those are ballpark but can’t be more. You’re still looking at $7b to account for?
The Tesla gigafactory in Texas cost $1b to build so that shows you the amount of volume / footprint that gets built for that price.
I’m not saying anything you said was wrong , I’m just dumbfounded In The losses for something that isn’t their main business - say the Kentucky super duty plant.

 

[Pioneer74]

while agree with you on the upfront costs in what world does it cost $5 billion in losses per year?

R&D on new models, a battery plant in Michigan, 2 battery plants in Kentucky, a battery plant in Tennessee, and an assembly plant in Tennessee complete with its own stamping plant.

 

[Chado]

Hopefully it's because ford is bringing in more in house development for modules and software.
Tesla claims the cybertruck is already not being sold at a loss, first EV truck maker to do so.
Maybe Ford will get there one day and this pain up front will get them there

 

[invertedspear]

in what world does it cost $5 billion in losses per year?

In the "accountants of businesses that don't like to pay taxes and don't mind the bad press of revealing massive losses" world. If you factor investments in to fixed capital resources, you get to claim that loss. If they didn't apply those one-time costs to EV's they would show profit per vehicle, but that wouldn't give them any tax advantage.

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