Ford Expects to Lose $3 Billion on Its EV Business This Year

, the current leader in the EV market, it’s going to be ramping up production, resulting in some of the greater losses. For example, Ford has several new factories in the works, including two battery-cell plants in Kentucky and one in Tennessee, plus a new space focused on making electric trucks. That’s all in service of reaching an annualized production rate of 2 million EVs and an operating profit margin of 8 percent by the end of 2026.

The EV announcement came as part of a larger restructuring in the way Ford reports it finances. Previously, profits and losses were divided by region, but now the marque will divvy up numbers based on business unit: Model E , Ford Blue , and Ford Pro . While EV losses may be mounting, the other Ford sectors have seen increased profits in recent years. Ford Blue tallied operating profits of $6.8 billion last year, more than double 2021 numbers. And Ford Pro clocked $3.2 billion in operating profits in 2022. In total, the automaker is forecasting overall operating profits of $9 billion to $11 billion this year, even with the EV losses.

Last year, Ford CEO Jim Farley said the marque had looked into spinning off at least one of its business units, but ultimately decided against doing so. Sounds like that’ll pay off in the future, at least as far as Ford’s bottom line is concerned.

Yikes.

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