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Ford Model e losing billions as it says EV unit should be seen as startup

DETROIT — Ford Motor Co.'s electric vehicle business has lost $3 billion before taxes during the past two years and will lose a similar amount this year as the company invests heavily in the new technology. The figures were released Thursday as Ford rolled out a new way of reporting financial results. The new business structure separates electric vehicles, the profitable internal combustion and commercial vehicle operations into three operating units. Company officials said the electric vehicle unit, called “Ford Model e,” will be profitable before taxes by late 2026 with an 8% pretax profit margin. But they wouldn't say exactly when it's expected to start making money. Chief Financial Officer John Lawler said Model e should be viewed as a startup company within Ford. “As everyone knows, EV startups lose money while they invest in capability, develop knowledge, build (sales) volume and gain (market) share,” he said. Model e, he said, is working on second- and even third-generation electric vehicles. It currently offers three EVs for sale in the U.S.: the Mustang Mach E SUV, the F-150 Lightning pickup and an electric Transit commercial van. The new corporate reporting system, Lawler said, is designed to give investors more transparency than the old system of reporting results by geographic regions. The automaker calculated earnings for each of the three units during the past two calendar years. Model e had pretax losses of $900 million in 2021 and $2.1 billion last year, and it is expected to lose $3 billion this year. In the past two years Ford has announced it would build four new battery factories and a new vehicle assembly plant as well as spending heavily to acquire raw materials to build electric vehicles. By the end of this year, the company based in Dearborn, Michigan, expects to be building electric vehicles at a rate of 600,000 per year, reaching a rate of 2 million per year by the end of 2026. Ford Blue, the unit that sells internal combustion and gas-electric hybrid vehicles, made just over $10 billion before taxes during the last two years. Ford Pro, the commercial vehicle unit, made $5.9 billion during those years, the company said. For this year, Ford expects Ford Blue to post a $7 billion pretax profit, modestly better than last year. Ford Pro is expected to earn $6 billion before taxes, nearly double its earnings last year, Lawler said. Ford was to present the new structure, announced last March, to analysts and investors on Thursday.

Weekly Recap: An '80s encore in the auto world

The '80s returned in a big way this week, as National Lampoon's, Ghostbusters, Miami Vice, and even Tetris were back in the news. While there were far more serious topics (see below), nostalgia mingled with modern marketing to put these Reagan-era favorites back in the spotlight. The '80s were alternately cold and corny at times, but their cultural touchstones can still generate big money. That's why Infiniti recreated an iconic scene from National Lampoon's Vacation (1983) for an advertisement that hawks the QX60 crossover. Actor Ethan Embry, who played Rusty Griswold in a later Lampoon's movie, pilots the Infiniti – which is serving as a modern Family Truckster – for a trip to Walley World. A blonde pulls alongside in a red Lamborghini. They flirt, and she drives on. Christie Brinkley, who played the original girl in the red sports car (she drove a Ferrari in the '83 flick), is riding shotgun and chides Embry with: "A blonde. In a convertible. Seriously?" Okay, it's hardly on the level of "here's looking at you," or even "you can't handle the truth," but it should resonate with '80s babies, many of whom are now having children of their own and moving into three-row SUVs like the QX60. Naturally, Hollywood is going back to the well, too, with a Vacation remake that premiers July 29. Meanwhile, Ghostbusters is returning next year, and director Paul Feig offered a peak at the new Eco-1 in this tweet. In the 1984 classic, the team drove a modified 1959 Cadillac. Now, it will drive a late '80s Cadillac. As expected, the announcement generated support and controversy from movie and car enthusiasts. His tweet had generated several thousand retweets and favorites in the days following the news. Though the '80s Caddy looks, uh, less elegant in comparison to the now-iconic fins and curves of the original Ecto-1, it's about the same time lapse into the past as the '59 Caddy was to viewers in 1984. Speaking of 1984, Miami Vice, which debuted that year on NBC, is seeing one of its hero cars hit the auction block, Mecum Auctions announced this week. The 1986 Ferrari used on the show will be offered for sale Aug. 15 during Monterey classic car week. The white supercar runs a 390-hp flat 12-cylinder engine paired with a five-speed manual transmission and was in storage after the show ended in 1989 until earlier this year. It has 16,124 miles on the odometer and is authenticated by Ferrari North America and Classiche.

Top Gear season 25 opens with a V8 roadtrip through America

Great news for fans of BBC Top Gear: the first episode of season 25 is here. Viewers of BBC America will catch the season opener on March 3, and for the American audience this episode is definitely suitable watching. The episode has been dedicated to V8 sportscars almost in its entirety, as it's been wrapped around a Western roadtrip with a motorsport bias. The three hosts get to choose three V8 sports cars, with the basic idea of finding the best all-rounder. Matt LeBlanc goes for a Hennessey-tuned GT350R, Rory Reid chooses a Jaguar F-Type SVR, and Chris Harris shakes up the pack by selecting a McLaren 570GT. It's a nicely varied trio, with V8 power still showing what it's good for. There are various challenges along the way, just like there should be on a Top Gear roadtrip episode – even if the road surface itself isn't always ideal. But things smoothen out, all the way to a NASCAR oval and an airport runway; the flooded Bonneville salt flats aren't suitable for shenanigans, so substitutes have to be found. The trio also hit dirt roads, and have to evade a buggy-driving Ken Block during a "moonshine run to the border." Fans of Sabine Schmitz will be pleased to find her piloting a chain car racer, which consists of two American junk cars with a Honda CRX chained in the middle. It must make sense to someone. The Star In A Reasonably Priced Car segment has been retained for this season. This time it's the British actor Rob Brydon driving the Toyota GT86, on a very wet lap around the show's Dunsfold Aerodrome track that must be a cult classic by now. All in all, the season 25 opener is exactly what it says on the tin. There's nothing out of the ordinary, but it still has excellent cinematography, V8 roar and some nice landscapes. Classic Top Gear. Cowboy duels, Sabine Schmitz chain car racing, @RobBrydon, a @kblock43 car chase and #TheStig The latest episode of #TopGear is available on @BBCiPlayer now. Outside the UK? See local listings here: https://t.co/HPPhbUErDu pic.twitter.com/87F53C8oYb — Top Gear (@BBC_TopGear) February 26, 2018 Related Video: