Ford posts another big loss for its EV division in 2024

In 2024, Ford’s worldwide EV sales dropped 9 per cent compared to 2023, while revenue for the Model e division is down 35% YoY, falling to $3.9 billion. Overall, the carmaker only sold 105,000 electric cars last year. To put this into perspective, the combustion engine division Ford Blue sold 2.86 million vehicles last year, while the business customer division Ford Pro sold 1.5 million vehicles.

However, the total number of electric vehicles sold by Ford is likely higher since the Ford Pro segment also offers EVs. The Ford E-Transit, for example.

At this point, however, we want to focus on the Model e segment, which has so far mainly been associated with the sporty Mustang Mach-E and the electric F-150 Lightning pickup. Deliveries of the latter model were suspended last year due to quality problems. And production had already been cut back before that due to weak demand.

The Capri and Explorer electric cars produced in Cologne, Germany, are also relatively new in the Model e segment, but were only available for a fraction of the 2024 financial year and are also struggling with demand problems: Short-time working was announced at the Cologne plant in November, and Ford also plans to cut 2,900 jobs there.

EV sales in the US are up

Ford had already published its sales figures for the US market in early January. In contrast to global sales, the carmaker was able to increase sales of all three of its electric vehicles on offer there.

The Mustang Mach-E was sold a total of 51,745 times – an increase of 27 per cent. In Q4 alone, 16,119 Mustang Mach-Es were sold. For the year as a whole, the model was the second best-selling electric SUV in the US – behind the Tesla Model Y. Ford was able to increase sales of the large F-150 Lightning electric pickup by 39 per cent to 33,510 units. And the E-Transit sold 12,610 units – an increase of 64 per cent.

Moreover, Ford no longer focuses on purely electric vehicles, but on electrified ones. If hybrids and plug-in hybrids are added to the battery electric cars, Ford achieved 285,291 sales in the US, an increase of 38 per cent. And as Ford itself states, these 285,291 electrified vehicles are expected to exceed the results of GM and Stellantis. However, in terms of pure EVs, had to admit defeat to long-term rival GM which sold 114,432 US electric cars in 2024.

Moreover, despite these rather positive figures for the US market, electric sales are well behind plan – with total sales of almost two million vehicles, the electric share was just 4.7 per cent. Production of the F-150 Lightning is only starting again after it was paused in November. The Ford Model e electric division has been recording high losses quarter after quarter, so Ford has cut its investments in electric mobility and rescheduled several models.

Making changes at the top

Ford is accordingly dissatisfied with the Model e division – and is now making personnel changes. Andrew Frick, previously President of the combustion engine division Ford Blue, is also taking over the management of Ford Model e. In addition, Kay Hart, who has led Ford’s International Markets Group to record profitability, has been appointed General Manager of Ford Model e and will report to Frick. Hart was a key member of Team Edison, which developed and launched the Mustang Mach-E and F-150 Lightning.

“The Model e team will remain laser focused on delivering a profitable EV business as we launch our next-gen vehicles and solve for the unique needs and experiences of EV customers,” Frick said. “At the same time, we will align our teams to improve our overall distribution and market approach to better serve our dealers, who are core to our retail execution across Ford Blue, Model e, and Pro as they become more specialized.”

The report goes on to say that Ford Model e has already achieved cost improvements of $1.4 billion in the past year, less $100 million for the introduction of new battery plants and next-generation electric vehicles. However, Ford does not expect a turnaround for 2025 either: According to the annual forecast, the division is expected to post a loss of 5 to 5.5 billion US dollars this year.

ford.com (presentation), ford.com (press release), ford.com (management)