102
Ford cancels EV battery orders as losses widen to $130,000 per vehicle sold
(www.notebookcheck.net)
this post was submitted on 13 May 2024
102 points (92.5% liked)
[Dormant] Electric Vehicles (Moved to [email protected])
3206 readers
1 users here now
We have moved to:
A community for the sharing of links, news, and discussion related to Electric Vehicles.
Rules
- No bigotry - including racism, sexism, ableism, casteism, speciesism, homophobia, transphobia, or xenophobia.
- Be respectful, especially when disagreeing. Everyone should feel welcome here.
- No self-promotion.
- No irrelevant content. All posts must be relevant and related to plug-in electric vehicles — BEVs or PHEVs.
- No trolling.
- Policy, not politics. Submissions and comments about effective policymaking are allowed and encouraged in the community, however conversations and submissions about parties, politicians, and those devolving into general tribalism will be removed.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Wtf are these crackheads doing? EV's are insanely simple machines compared to combustion ones. How could you ever fuck your production cost so much as to get losses like that. This feels like a manufactured failure to get bailed out or to stir public opinion on the whole china EV situation.
It's because there is a lot of fixed cost being divided into a relatively small number of units. For instance "Ford Blue" is Ford's ICE division and in Q1 it moved about 626,000 units while "Ford Model e" is Ford's EV division and it only moved about 10,000 units in Q1. Source.
So if Ford Blue spends a Billion dollars that's a per vehicle cost of $1,597. If Ford Model e spends a Billion dollars its a per vehicle cost of $100,000.
So what would cost a Billion dollar? Well, how about 3 new battery factories plus an EV assembly factory that cost something like 7 Billion dollars?
That's not nearly all of it either. In May of 2021 Ford said that would spend something like 30 Billion by 2025 (that's next year!) to increase EV production.
So yeah, Ford has spent the GDP of some small countries shifting to EV production and when you divide those very large sums into a very small number of vehicles you get upside down real quick.