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Ford’s electric vehicle unit lost $2.1 billion in 2022 and put the company in the red, according to a new financial reporting system the automaker unveiled Thursday.
Ford announced that starting this year, the company’s financial results will be divided into three business units: Ford Blue, which encompasses vehicles with combustion engines and hybrids; Ford Model e, in charge of electric vehicles; and Ford Pro, which provides commercial vehicles and services.
According to this new division, Ford Model e lost 2.1 billion dollars in 2022, 133 % more than in 2021. Meanwhile, Ford Blue had profits of 6.8 billion dollars, an increase of 106 %, and Ford Pro earned 3.2 billion dollars, an 18.5 % increase.
In addition, Ford Next, which develops autonomous vehicles, lost $900 million, $100 million less than in 2021, and Ford Credit, the company’s financial arm, earned $2.7 billion.
Ford had an adjusted net operating income (ebit) of $10,415 million and a net loss of $2,152 million in 2022.
Ford CFO John Lawler said in a statement that the new financial reporting system “provides new levels of strategic clarity, insight and accountability for the Ford+ plan for growth.”
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“It’s not just changing how we report financial results; we are transforming how we think, make decisions and run the company and allocate capital for higher returns,” he added.
Ford also reiterated today that it will produce about 2 million electric vehicles per year by 2026 and that it expects to achieve a net operating profit margin of 10 %, which will be 8 % for Ford Model e.