Ford expects its electric car business to lose $3 billion (£2.4 billion) this year as it ramps up spending on new models and the plants to build them.

Edited by | Huxina

Economy section

25 March 2023

     The expert of the famous leading car fabricating  '' Ford '' expects that the electric car division, known as Model E, reported a loss of $900 million in 2021 and rose to $2.1 billion in 2022 as production of models such as the Mustang Mach E accelerated. The unit posted a three-year cumulative loss of $6 billion from 2021 to 2023.

It comes as automakers come under increasing pressure to produce electric models of their cars as part of the global push towards net-zero emissions targets.

Market leader Tesla has pushed prices lower in an effort to corner the market, particularly in China where it hopes to beat competition from the likes of local producer Geely.

Other automakers try to lower prices as quickly as possible even as demand for the raw materials required to make them drive up costs increases.

Earlier this week, Stellantis CEO Carlos Tavares warned that the middle classes could not afford electric cars.

Motorists are also losing interest as the cost of energy rises and gasoline and diesel prices continue to fall, the AA suggested.

Ford said plans to build four new electric vehicle battery factories and a new auto assembly plant, in addition to spending heavily on raw materials, would cost it billions.

“The Ford Model e is the EV company inside Ford, and as everyone knows, EV startups lose money while investing in capabilities, developing knowledge, building scale, and gaining share,” John Lawler, the company's chief financial officer, told investors.

CEO Jim Farley is reorganizing Ford by dividing it into three units: an e-model, one for internal combustion engine vehicles called Ford Blue, and a third for commercial trucks and vans are known as the Ford Pro.

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