Ford’s electric vehicle business lost $2.1 billion in 2022 and has projected another $3 billion in losses for 2023, according to a new financial reporting structure unveiled Thursday morning.
It was the first financial report in which the automaker broke out its electric-vehicle business from its broader business. Ford has been investing in hybrid and electric vehicles, including the Mustang Mach-E and an all-electric F-150, and it announced last year that it would boost electric vehicle spending to $50 billion through 2026.
The results show how the company’s legacy cars, including gas-powered options like the F-150 pickup truck, are seeing profits offset by the cost-intensive work of building out the electric vehicle unit, known as “Ford Model e.” The company’s gas-powered business and its commercial and government fleet generated $6.8 billion and $3.2 billion in adjusted income in 2022, respectively.
“We’ve essentially ‘refounded’ Ford,” chief financial officer John Lawler said in a news release.
“It’s not only about changing how we report financial results,” Lawler said. “We’re transforming how we think, make decisions and run the company, and allocate capital for highest returns.”
This is a developing story and will be updated.
