Electric cars, a failure?
Ford is delaying its electric vehicle plans as well. The American carmaker reported a loss. The leaders point the finger at low demand. As a result, plans in this region need to be reviewed.
Ford loses money on electric vehicles
Overall, the company's financial statements seem to be performing well. Ford anticipates reporting a $12 billion pre-tax profit in 2024. Positive figures, powered by trucks and internal combustion engines, will make up for the losses incurred by electric vehicles.
For every electric vehicle, the Model E segment lost more over $47,000 on average. In 2024, the pre-tax loss is projected to reach $5.5 billion.
According to the corporation, investments will go toward hybrid cars, but in the future, it will concentrate on more affordable electric car models.
The head of the Model E division, Marin Gjaja, said that new electric cars won't be introduced until they prove to be viable.
The top electric car maker, Tesla, started a pricing war in 2023. Elon Musk's business has implemented a roughly 25% cut to offset competitors, although at the expense of lower profit margins.
Hertz has also suffered from Tesla's cheaper costs. The US automobile rental firm offered electric autos for less money than gasoline and diesel vehicles.
Even in the United States, some corporations are reconsidering, despite the fact that sales of electric cars have increased by 58% in only a single year.
Among other things, the stars and stripes car industry had recently been the epicenter of many strikes led by Ford workers as well as those from General Motors and Stellantis.
All of this is true even though the Biden administration used the Inflation Reduction Act to provide a number of incentives for the electrification of the automobile sector. This strategy has particularly hurt Europe, which is already having trouble competing with China.
The demand for electric vehicles is still modest across the old continent. Companies that make investments are Toyota and Volkswagen. In summary, incentives alone sustain the market.