Staff Reports
The Ford Motor Company, once a pioneer in the automotive industry, is now facing a challenging road ahead due to the increasing demand for electric vehicles (EVs). According to a recent report in the Wall Street Journal, Ford’s profits have plummeted by almost 50 percent as it attempts to transition to all-electric or mostly electric vehicle production.
New Report Shows Ford’s Electric Vehicle Efforts Are Costing the Company an Unthinkable Amount of Profit via @gatewaypundit https://t.co/lXjCvapyKQ
— The Gateway Pundit (@gatewaypundit) February 8, 2024
Although there was initially some positive news, with Ford’s stock rising 3 percent on the expectation of an adjusted operating profit of $11 billion this year (well above analysts’ predictions of $9.6 billion), the Journal’s report soon turned sour. It highlighted the financial woes stemming from Ford’s EV production, particularly the soaring costs associated with manufacturing EVs.
The Journal revealed that Ford’s EV line incurred a staggering loss of $4.7 billion last year, with projections indicating further losses of between $5 billion and $5.5 billion in the coming year. Additionally, if not for Ford’s heavy investments in projects like the Mustang Mach-E and F-150 Lightning EVs, the company’s adjusted operating profit would have been a substantial 50 percent higher – a painful reality check.
One major issue for Ford lies in their inability to convert their most popular products, such as pickup trucks and SUVs, into electric vehicles. The Journal explained that the challenge lies in the fact that heavier vehicles like pickups and SUVs cannot be efficiently transformed into electric vehicles. Despite last year’s painful experience, Ford is brazenly doubling down on EV development. The company plans to allocate 40 percent of its capital expenditures to EVs in 2024, just as they did in 2023.
The question arises: why is Ford pursuing a path that has cost them significant losses? It is not due to customer demand or interest since the majority of Americans remain indifferent towards EVs. The answer lies in the belief held by Ford and other car companies that EVs are the future, a conviction fueled in part by the Biden administration’s aggressive push and de facto mandates to accelerate EV manufacture and sales.
Governments worldwide, including the United States, are actively promoting EVs through rhetoric, emission standards, and generous tax subsidies. These measures amount to government coercion, forcing consumers to purchase a product they are not particularly interested in, all in the name of reducing carbon emissions, a strategy championed by climate activists. This heavy-handed approach is in direct contradiction to the principles of the free market.
One would expect profit-driven companies, especially one like Ford that has a rich history of making cars profitable, to recognize the futility of pursuing a venture that lacks genuine customer demand. As Ford navigates this uncharted territory, its future success may hinge on finding a balance between customer preferences, government regulations, and its own financial bottom line.
