Automaker Ford recently released an earnings projection showing that the company's profits could soar by 50 percent if it halted production of and investment in electric vehicles (EVs).
Amid weaker consumer demand for premium EVs, Ford has already announced that it is slashing production of its F-150 EV Lightning pickup truck – the electric version of its iconic F-150 – delaying roughly $12 billion in investment. (Related: Ford loses billions on electric vehicles, reduces its EV production.)
EV sales in the U.S. have actually held up over the last in 2023 with over a million EVs delivered – up by about 51 percent compared to 2022 – "driven in part by generous incentives from Big Government's Inflation Reduction Act."
During the quarter, Ford reportedly dispatched close to 21,000 EVs – an increase of about 15 percent compared to last year – driven by vehicles such as the Mustang Mach-E, which sold nearly 15,000 units year-to-date, up almost 43 percent year-over-year and the E-Transit van is also doing well.
The F-150 EV, on the other hand, saw a slump – with sales down by about 45 percent in the third quarter, partly due to production being halted "to carry out some expansion work" during the said period. (Related: Ford to lay off 1,000 employees as focus on EV costs the company BILLIONS.)
Reportedly, there had been indicators that demand for the truck was not too strong. Last July, for instance, Ford said it would reduce the listed price on some trims of the Lightning by almost $10,000.
F-150's gas counterpart remains as Ford's most lucrative product line
Industry experts also mentioned that the slow uptake of the F-150 Lightning could be an issue for Ford for a couple of reasons.
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The F-150's gas counterpart is still the company's single most lucrative product line. It has been the best-selling U.S. vehicle for over 40 years – with its overall truck sales for Q3 standing at more than 275,500 units, roughly a 16 percent year-over-year increase. (Related: Test finds EV Ford-150 Lightning has "abysmally bad" towing ability.)
Margins for trucks are also higher than they are for other body styles. This means that the electrification of the truck line-up remains crucial to Ford's longer-term strategy and profitability and the recent setbacks for the F-150 EV are a bit concerning, indicating that customers are not yet ready for an electric pickup truck. (Related: Range test finds gas pickup can tow 2,000-lb trailer 2.8 times farther than new electric pickup.)
Industry experts have pointed out that even this level of growth didn't seem to meet the lofty targets of mainstream automakers, such as General Motors, Tesla and Toyota, which may have overplayed their production capacity and investments.
According to the Wall Street Journal, Ford is expected to have an adjusted operating profit of $11 billion in 2024 after analysts expected only $9.5 billion. The company’s leaders noted that "resilient U.S. sales, the absence of the strike costs, and a full year of profit from the company’s new Super Duty F-Series truck could lead to profit growth."
The company also found that pickup trucks and big sport-utility vehicles are too heavy to become efficient electric vehicles, which could prove to be a blessing for Ford’s profit numbers.
CEO Jim Farley said he only plans to launch next-generation EVs that will be profitable within a year. He added: "The company still plans to devote 40 percent of its capital expenditures to EV technology in 2024. The ultimate competition is going to be the affordable Tesla and the Chinese OEMs (Original Equipment Manufacturers)."
Watch this video discussing how Ford and General Motors are unable to sell enough EVs.
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More related stories:
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Ford expected to announce HUGE losses in EV sales… other automakers are bound to follow suit.
Electric vehicles perform WORSE in EPA estimates than gas-powered cars: The EV push is a RIGGED SCAM.
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