As Ford’s annual virtual shareholder meeting unfolded, the spotlight gleamed on the future of its electric vehicle (EV) program. CEO Jim Farley and Executive Chair Bill Ford faced a barrage of questions regarding the viability of EVs amidst ongoing financial losses.
Addressing concerns head-on, Farley acknowledged the significant losses reported in the first quarter, totaling $1.3 billion within the Model e division. However, he emphasized the company’s strides in curbing these losses and expanding its market share among new consumers. Farley stressed, “We remain excited about EVs, which offer incredible value, performance, and convenience for many of our customers.”
Bill Ford echoed this sentiment, highlighting Ford’s balanced propulsion lineup, ranking as America’s top brand for gas vehicles, second for EVs, and third for hybrids. He reassured shareholders of the company’s commitment to electric mobility, stating, “We have a very good balance of propulsion across our lineup.”
Despite the challenges, Ford’s international operations have turned profitable after years of losses. Ford Pro, the B2B arm, has emerged as a nearly $60 billion entity, aiding in offsetting EV production costs. Farley outlined the positive trajectory, expressing confidence in achieving record earnings before interest and taxes, projected at $12 billion in 2024.
Farley acknowledged the bumpy road to EV adoption and profitability, emphasizing Ford’s adaptability in a dynamic global marketplace. He stressed the importance of affordability, acknowledging the early pricing premium on EVs as untenable. “Customers want choice,” Farley asserted, indicating the company’s focus on making new EVs more affordable and profitable.
In navigating towards an electrified future, Ford recognizes the pivotal role of hybrid vehicles in bridging customers to pure EV adoption. Farley highlighted Ford’s longstanding investment in hybrid technology, with first-quarter hybrid sales up by 36%. “Hybrid vehicles are especially important to bridge customers to adopting pure EV,” Farley emphasized.
In essence, Ford’s shareholder meeting underscored the company’s unwavering commitment to electric mobility, despite financial setbacks. With a strategic focus on affordability, innovation, and hybrid technology, Ford charts a course towards a sustainable and electrified automotive future. As Farley succinctly put it, “We are absolutely crushing it.”
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