Ford to increase EV production, boost profits

 

Ford demonstrated its plans to grow its gas-powered and electric vehicle businesses profitably, with a 2 million EV production run rate target and an 8% EBIT margin by 2026.  Ford maintained its 2023 guidance of $9B to $11B in adjusted EBIT and about $6B in adjusted free cash flow. To support its growing EV production, Ford announced additional agreements for the supply of lithium goods. Ford intends to streamline operations, boost traditional product margins, and save costs. This year, the corporation anticipates a loss from its electric car business of about $3B, which earnings from its traditional fleet businesses will offset. Ford highlighted the value of software and subscription-based business models, using the BlueCruise hands-free driving system as an illustration. Ford announced deals with Albermarle, Compass Minerals International, EnergySource Minerals, and Nemaska Lithium to supply lithium products to support its progressive EV plan.