Ford's electric vehicle business may lose more than 90 billion this year.

(Bloomberg)

[Financial Channel/Comprehensive Report] In order to catch up with Tesla (Tesla), a major American electric car manufacturer, many car manufacturers are actively developing electric vehicle business, even Ford (Ford) is no exception. However, if traditional car companies want to achieve The profitability of the electric vehicle business seems to have a long way to go. Ford estimates that its electric vehicle business will lose about US$3 billion (approximately NT$91.2 billion) this year.

Ford has been actively developing electric vehicles in recent years. In March last year, it officially separated the electric vehicle business Model E and traditional gasoline vehicles into separate departments.

However, Ford’s electric vehicle division has suffered considerable losses. Analysts estimate that Ford currently loses US$9,000 (approximately NT$270,000) for every electric vehicle it sells. In order to develop its electric vehicle business, Ford has invested a huge amount of R&D investment. exacerbate losses.

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In this regard, Ford Chief Financial Officer John Lawler said that the electric vehicle business is a new business within the company, and losses are inevitable. In 2021, Ford's electric vehicle department will lose US$900 million (approximately NT$27.3 billion), and in 2022 it will lose US$2.1 billion ( About NT$63.8 billion), it is estimated that it will lose another US$3 billion this year.

But John Lawler is also optimistic that the loss of the Model E business will decrease year by year, and the return on investment will reach 8% by the end of 2026, close to the company's overall target of 10%. In 2022, Ford's return on investment will be 6.6%.

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