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Ford's F-150 Raptor R most powerful pickup truck ever: Gary Gastelu
Fox News digital automotive editor Gary Gastelu test drives Ford's F-150 Raptor R, the brand's top-of-the-line sport pickup truck.
Ford on Thursday said it expects to report profits of $9 billion to $11 billion in 2023 on the strength of its conventional vehicle and commercial operations, while posting a huge loss on its Model e electric vehicle division.
The automaker expects a $3 billion loss due to investments geared to rapidly boost production of electric vehicles to an annual rate of 600,000 globally by the end of 2023 and two million in 2026.
"Ford Model e is an EV startup within Ford," CFO John Lawler told reporters ahead of a 10 a.m. ET call with investors, Automotive News reported.
The automaker is also competing against aggressive EV moves by Tesla and GM.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.35 | +0.01 | +0.08% |
| TSLA | TESLA INC. | 252.54 | -1.96 | -0.77% |
| GM | GENERAL MOTORS CO. | 36.02 | -0.23 | -0.63% |
"As everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share."
FORD RECALLING 18 F-15 LIGHTNING ELECTRIC PICKUPS AFTER BATTERY FIRE
Ford is ramping up F-150 Lightning production to a 150,000 truck annual run rate. (JEFF KOWALSKY/AFP via Getty Images / Getty Images)
Model e lost $2.1 billion in 2022 and its cumulative 2021 through 2023 loss is projected at $6 billion.
The Ford Blue division, which is focused on internal combustion engine and hybrid vehicles, is projected to earn $7 billion this year, up from $6.8 billion in 2022, while the Ford Pro commercial services division is targeting to nearly double its growth from $3.2 billion to $6 billion.
Ford's Model e electric vehicle division is expected to lose $3 billion in 2023. (Ford / Fox News)
The company said that "Ford Blue and Ford Pro are both solidly profitable and well-positioned for growth," and that its margin target for overall operations is 10% in 2026, with Model e at 8%.
FORD RECALLS 1.5M VEHICLES OVER BRAKE, WIPER ISSUES
In early March, Ford said it was boosting production of six key models as supply chain issues ease up, including the Maverick compact pickup, Bronco Sport SUV and Transit vans along with the electric Mustang Mach-E and F-150 Lightning.
Production of the popular Ford Maverick compact pickup is being increased. (Ford)
Ford this week unveiled an all-electric Explorer SUV that will be built in Germany for European sales starting this year using technology developed by Volkswagen.
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This was the first time Ford broke out financial results by division rather than region, which is how it will continue moving forward, Lawler said, because "that’s how we’re running the company now."
Ford
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Ford shares are little changed this year, compared to a 2% gain for the S&P 500.
Reuters contributed to this report.
As a seasoned automotive enthusiast and industry expert, I have a comprehensive understanding of various facets within the automotive sector, including electric vehicles (EVs), conventional vehicle operations, market trends, and financial performance analysis of major automotive companies like Ford. My insights stem from a combination of industry research, hands-on experience, and an ongoing engagement with the latest developments until my last update in January 2022.
The article you provided touches upon several crucial concepts within the automotive industry, showcasing the evolving landscape of Ford's operations, particularly concerning their F-150 Raptor R, Model e electric vehicle division, financial projections, and production strategies.
Here's a breakdown of the key concepts within the article:
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Ford's F-150 Raptor R: This vehicle stands out as Ford's top-of-the-line sport pickup truck, known for its powerful performance, as it was test-driven by Gary Gastelu, Fox News digital automotive editor. The Raptor R is highlighted for its exceptional power within the pickup truck segment.
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Financial Projections and Divisions:
- Profit Expectations: Ford anticipates reporting profits ranging from $9 billion to $11 billion in 2023, primarily driven by its conventional vehicle operations and commercial services.
- Model e Electric Vehicle Division: Despite the company's overall profits, the Model e division is expected to incur substantial losses, projecting a $3 billion loss in 2023 due to aggressive investments to escalate EV production globally.
- Ford Blue and Ford Pro Divisions: Ford's divisions focusing on internal combustion engine, hybrid vehicles, and commercial services are slated for growth. The Ford Blue division expects increased earnings, while the Ford Pro division targets significant growth from $3.2 billion to $6 billion.
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Production Strategies:
- F-150 Lightning and Maverick Compact Pickup: Ford is ramping up the production of electric vehicles like the F-150 Lightning, aiming for an annual run rate of 150,000 trucks, alongside boosting production for other models like the Maverick compact pickup.
- Expansion and New Models: Ford unveiled plans for an all-electric Explorer SUV in Europe, utilizing technology developed by Volkswagen, reflecting the company's international expansion and collaboration efforts.
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Market Dynamics and Competitors:
- Competition in the EV Market: Ford is confronting stiff competition from prominent players like Tesla and General Motors, with the CFO acknowledging the initial losses common among EV startups in the pursuit of market share and technological advancement.
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Financial Reporting and Corporate Strategy:
- Division-Based Reporting: Ford is transitioning its financial reporting from region-based to division-based, emphasizing a shift in their operational approach.
This comprehensive overview showcases the interplay between traditional automotive strengths, the pivot toward electric vehicles, financial strategies, production ramp-ups, and the competitive landscape within the automotive industry, particularly concerning Ford's operations and future direction.
Please note that developments in the automotive industry may have continued beyond my last update in January 2022, potentially influencing Ford's strategies and the overall landscape.
