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As of 11-22 GM "expects its EV lineup to be profitable by 2025." "Ford's Model e business generated operating profit margins of roughly negative 40% in 2022, a
by ckw 4y ago
As of 11-22 GM "expects its EV lineup to be profitable by 2025."
"Ford's Model e business generated operating profit margins of roughly negative 40% in 2022, according to the company."
I don't see how those companies survive.
- is_true 4y agoFord reduced it's offerings so much that is probably not gonna make it. It is hard to understand what were they thinking.
- dsfyu404ed 4y agoFord has always had a hard on for product line consolidation. The guys who were junior MBA fly on the wall during the "global Ford" push of the 90s (which was a mixed bag but left them less screwed in 08 than everybody else) are "real decision making authority" now.
- toomuchtodo 4y agoI don’t disagree with this but they also went all in on trucks thinking a future would come where they would still get to sell combustion trucks with fat margins. And then Tesla and Co came along, proved EVs were feasible, which allowed nation states to comfortably start setting future new combustion vehicle sales bans. As the Indiana Jones quote goes, “They choose poorly.” They thought no one would ever hold them accountable to actually innovate, and they may face a corporate death penalty for the hubris and shortsightedness.
- maxerickson 4y agoThey can start making cars again no problem, that their current offerings are scored as light trucks doesn't mean that they are all in. They can stick a mass market electric sedan or compact in their lineup whenever it makes sense.
- gamblor956 4y agoThe -40% margin is not a (per) unit margin; it's a business measure that includes generally all expenses related to running the business (including R&D, marketing, capital expenditures, etc.) So a -40% operating profit margin on a newly formed capital-intensive business line isn't a bad thing.