Ford loses $2 billion in three months on EVs. How are car makers supposed to survive against cut price electric cars.
Ford’s electric cars division lost almost A$2 billion in the United States during the first three months of this year, according to the company’s first quarter 2024 earnings report, and it raises the question: could the pursuit of electric cars prove too costly for some carmakers to compete?
Kett said that other Chinese car brands sell so many combustion engine vehicles globally that they’re able to absorb the losses of selling all their vehicles including EVs so cheaply.
“As much as we talk about their EV credentials, and it's very strong, I think up until September this year they’ve exported out of China more than two million cars and 75 per cent of those cars are ICE (internal combustion engine) cars,” Kett said.
“So all this excess capacity and amortised transmission and engine facilities, that’s why they can price so aggressively in their ICE cars and then complement them with their EVs.”
