Ford reports $12 billion investment in electric vehicles

Ford estimates that its customers in North America are not yet willing to pay more for an electric vehicle.

Behind this decision, there is certainly the philosophy of the North American market, but more importantly, the harsh reality of the numbers. Ford’s electric division recorded a net loss of approximately $3.1 billion during the first three quarters of this year.

The reluctance of customers to pay more for an electric car instead of a thermal or hybrid one has complicated Ford’s ambitious and costly plans to significantly increase the production of these vehicles. Although Ford’s electric sales, and those of the automotive industry in general, continue to rise, they are not progressing at the pace Ford had anticipated.

The company’s leaders in Detroit have, however, assured that the company would not cut back on spending for future electric vehicle models. They only plan to increase manufacturing capacity and investments in this sector more gradually than initially expected. The construction of Blue Oval City, Ford’s new electric vehicle manufacturing campus in Tennessee, will proceed as initially planned.

The historic strike Ford just experienced cannot be without consequences. Aside from the losses caused by the strikes, the manufacturer must incorporate into its financial forecasts the concessions made to the UAW Union, including an immediate 25% wage increase for all unionized workers. Ford has suspended its forecasts for 2023 to process this new information.

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