Ford Delays 600K EV Production Goal As Sales Dip In Q2

The company’s Model E unit reported revenue of $1.8 billion in Q2 2023, more than double compared to last year.

By: Iulian Dnistran

Jul 28, 2023 at 3:59am ET

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Ford has pushed back the goal of producing 600,000 all-electric vehicles to next year after its Model E business unit reported massive operating losses of $1.08 billion in the second quarter while operating margins were at -58.9 percent.

However, the unit responsible for EVs also reported revenue of $1.8 billion in the previous quarter, according to Ford’s latest earnings report, more than doubling from last year, thanks to increasing sales of the F-150 Lightning pickup which saw 4,466 units moved in Q2, up 118.7 percent compared to the same period last year.

At the same time, though, Mustang Mach-E sales fell 21.1 percent year-over-year, while the EV unit’s figures as a whole were down 2.8 percent compared to the first quarter. In June however, the firm’s EV sales were up 35.5 percent.

Sales of the all-electric E-Transit van were also down 23.8 percent compared to last year, with 1,744 units sold in Q2 2023.

Ford is now expecting a loss of around $4.5 billion for its Model E unit for this year, citing industry-wide pricing pressure and investments in capacity.

Jim Farley, the Michigan-based brand’s CEO, said that “The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford.”

“The shift to powerful digital experiences and breakthrough EVs is underway and going to be volatile, so being able to guide customers through and adapt to the pace of adoption are big advantages for us,” he added.

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The Mexico factory expansion – where the Mustang Mach-E is built – is now completed, according to the blue oval marque, which suggests that sales should start to pick back up in the second half of the year.

“Improved Mustang Mach-E inventory flow began to hit at the end of Q2 following the retooling of our plant earlier this year,” said Andrew Frick, VP of sales distribution, adding that the move “helped Mustang Mach-E sales climb 110% in June.”

Recently, the F-150 Lightning pickup got a price cut of up to $10,000 and is expected to be fitted with LFP batteries made in North America starting next year, which should help lower costs even further. The Mustang Mach-E is already offered with LFP packs.