{"id":68029,"date":"2024-05-12T11:35:24","date_gmt":"2024-05-12T16:35:24","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68029"},"modified":"2024-05-12T11:35:24","modified_gmt":"2024-05-12T16:35:24","slug":"bidenomics-at-work-ford-slashing-battery-orders-as-losses-per-ev-approach-100000","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68029","title":{"rendered":"Bidenomics At Work: Ford Slashing Battery Orders As Losses Per EV Approach $100,000"},"content":{"rendered":"
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Bidenomics At Work: Ford Slashing Battery Orders As Losses Per EV Approach $100,000<\/a><\/h3>\n<\/header>\n
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Ford is cutting battery orders in yet another sign that the EV market, despite a constant tailwind from the U.S. taxpayer, is starting to slow.<\/p>\n

The company is cutting the orders\u00a0to curb electric-vehicle losses as it scales back its EV strategy in a slowing plug-in market, according to insiders\u00a0who spoke to Bloomberg<\/a>.<\/p>\n

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Ford CEO Jim Farley has said the company’s EV unit\u00a0\u201cis the\u00a0main drag\u00a0on the whole company right now” and CAT said its\u00a0\u201ccooperation with Ford is moving forward as normal\u201d.<\/p>\n

The company responded by saying it wouldn’t comment on relationships with suppliers.<\/p>\n

Bloomberg\u00a0notes<\/a>\u00a0that with plummeting EV prices and weakening demand,\u00a0Ford’s losses per electric vehicle exceeded $100,000 in the first quarter<\/strong>, doubling last year’s deficit.<\/p>\n

Bloomberg Intelligence estimates that Ford’s projected EV unit losses this year will nearly offset profits from its Ford Blue division, which produces traditional internal combustion engine vehicles like the Bronco SUV and gas-electric hybrids such as the Maverick truck.<\/p>\n

BI analysts said of the results:\u00a0\u201cThat raises questions about the prudence of investing heavily in EVs.\u201d<\/p>\n

Ford’s order reductions highlight industry challenges as U.S. automakers face weaker-than-expected EV demand and battery makers in South Korea, China, and beyond struggle with unsold inventory.<\/p>\n