How much of the loss are marginal costs and how much are fixed costs?
How can you disagree with number 6?
Those are Fords numbers, past actual losses and future, 2023, losses predicted by Ford.
At the end of 2023, FORD says it will have lost $6,000,000,000 on it’s EV business.
I disagreed with #6 because it is March and…
Predicted is not actual. We have 9 months to go.
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They are not going to make 500 K EV’s and 600K ICE trucks in the same year. The EV trucks will ramp up production to eventually reach 500K trucks. The costs of building the plants and equipment to produce there will be amortized over a 20+ year span.
The ICE plants have probably amortized most of their equipment and facility costs already. The cost to produce ICE trucks will not increase as production decreases. The reason for that is that the trucks are currently built at multiple plants using multiple shifts. As production goes down, plants will close and shifts will be reduced. That will stabilize the unit production costs of these trucks well into the future.
Some of the closed ICE plants may be converted to EV for other types of Ford vehicles.
You may also be concerned about lost jobs at the ICE plants. The UAW contracts require Ford to hire displaced union workers AND pay their relocation expenses. When GM built the Saturn plant in Tennessee, not one Tennessean was hired for a production job at that plant. Some non union jobs went to locals and it was a short term boon for local construction companies, but that was about it.
I was at the Columbus international auto show recently where they were showing off all the new cars from various dealerships in the area and was walking through the big areas with Ford, Chevy and Dodge looking at the various new trucks and suvs with their $60k+ price tags and happened upon the Mercedes area with maybe 2 or 3 cars on display. I sat in them and was curious as to what their price was and couldn’t help but think “This Mercedes is only $53k?!” and realized I had spent too much time looking at the trucks’ price tags.
I can say, for certain though, which I would be more worried about having in the parking lot of the local stores, despite the Mercedes suv being cheaper than the domestic trucks.
Sounds like a big number taken out of context (and to those of us not used to working with such magnitudes of moolah). But in the grand scheme it is not that impactful. Look at their revenue and profit numbers to put it into context. Some of that will be offset by tax reductions for some years to come.
Most companies plow up to 10% of their profit back into R&D with ROI not expected until 3-5 years down the road. The nature of R&D- you only have to be right 51% of the time 
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The maverick was a fairly bare bones compact intended to replace the Ford Falcon.
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That was then, this is now.
The “new” Maverick is a small hybrid pickup:
And the demand is still not there . I dont know a single person who wants those EV garbage vehicles . Just bought my daughter a used 16000 mile 2019 Camry for less than $24000 . Nice vehicle and it will last for years .
Its still Foed junk.
Ford’s Maverick truck seems to have some major advantages
- priced in the low 20’s , hard to beat that price (new) for something looking like a pickup truck.
- sports-driving minded buyers can configure the truck for sub 7 second 0-60 acceleration
Some disadvantages imo though
- manual transmission option not available
- suspension system design seems to be adversely affecting ride quality
- hybrid system reliability unproved
- & of course it isn’t an F150 or Silverado, not a good choice if buyer requires that sort of functionality
I’d like it more if it had a 2.5 L straight 4 or 6 ICE, NA , non-hybrid, manual transmission option.
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It is Hybrid so it does not lend it self to a manual transmission - also just try and find one that can actually be purchased for low 20’s .
There is quit a few around us for less than $30000 and a lot in the $27000 range . If you are Ford person it is a good deal . After having a brand new Taurus years ago that was the biggest POS I would never buy another one .
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It’s called startup costs. Those costs will drop significantly within 5 years and Ford will then be making a huge profit on their EV vehicles.
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Hmm, the Maverick is better compared to the Santa Cruz rather than an F150/Silverado/Ram full size. Though the Santa Cruz is ICE, no manual transmissions.