Antonio Castro
April 28, 2024
After the White House’s billion-dollar injection in favor of American motorists, to encourage the conversion of the car fleet from thermal to electric, it turns out (unexpectedly) that hybrid models are doing better. In short, Ford sums up the electric vehicle business. And it turns out that for now “it is not profitable” despite the generous contributions expected by the White House to counter the invasion of Chinese competitors. The other interesting fact is that the American automaker has seen a growing demand for the various models in its collection of hybrid and battery electric vehicles. Enough to underline – explains the Gea agency, Green Economy Agency – “a significant increase in sales year after year”, as is evident from the analysis of the quarterly accounts of the American multinational.
Revenue in the electric vehicle (ModelE) segment has declined year-on-year, with the group citing “significant industry-wide pricing pressure” affecting the electric vehicle market, Ford headquarters said. The managers of the historic American car manufacturer (the most famous in America, officially founded in 1903) had to admit that “the high production costs are being felt”. To be honest, already at the beginning of the month the company had announced a two-year delay in its plans for the launch of a new three-row electric vehicle “to take advantage of the new chemistry and new battery formats”, the CEO had pointed out, Jim Farley, on an April 24 earnings call. Now we trust in new technologies – especially with regards to the battery pack, a cost which to date cannot be reduced – perhaps by resorting to other chemical products and not to the rare and “precious” lithium salts.
At the moment the only car that uses a sodium ion battery is the Chinese Hua Xianzi, produced by a joint venture between JAC and Volkswagen. What Farley calls “emerging technologies would substantially reduce the cost of batteries for that vehicle.” It remains to be seen whether it will be possible to accelerate so much to bring home a positive effect on the accounts of the coming months: “We will do everything necessary to be profitable in the first 12 months of our vehicles”, he explained. But perhaps most significant is the announcement that the multinational will reduce spending in the electric vehicle segment to meet “revised expectations” for the pace of electric vehicle adoption, he said. In other words, the sacred green fire (backed by the Inflation Reduction Act launched by the White House) seems to have lost some momentum. Looking ahead, Ford expects electric vehicle costs to improve in the future. Stadiums fact that at the moment the accounts have taken into account a quarterly loss of 1.32 billion dollars in the Model segment and before interest and taxes. Red which must be added to the already evident additional loss of 598 million dollars compared to the first quarter of 2023. Meanwhile, many Ford models recorded an increase in sales in the first quarter year after year.
Non-negligible detail. In the United States as in the rest of the world, one of the main problems is the availability of a widespread power and charging network such as that of petroleum products. But we are far from keeping pace. Either we can technologically increase the average mileage of electric-powered vehicles or the take-off of the non-thermal segment will not take off. And in fact, Fors made a point of citing the greater availability of fast charging stations and the reduction in prices of electric vehicles as reasons for the increase in sales. The company reported 36% growth in hybrids in the first quarter on a year-over-year basis, Farley said. “For the first time, some of our contribution margins on hybrids are higher than or similar to our contribution margins on hybrid engines. pure internal combustion,” he cut short. The Financial Times takes stock: American subsidies have been ineffective in blocking the invasion of vehicles from China. A losing battle despite billions spent to shore up the consumption of Western cars.
