Ford presented its business figures for the first quarter and reports a 200 per cent increase in sales for its electric car division. As a result, turnover is also higher and the loss lower than a year ago. However, the loss still totals 850 million dollars.
Ford’s electric car division is regaining some solid ground. Compared to the opening quarter of 2024, the Model e division now generated 1.2 billion dollars (+967 per cent) instead of 0.1 billion dollars and ‘only’ made an EBIT loss of 849 million dollars instead of 1.3 billion dollars. Sales were an important driver, but not the only one. It rose by 213 per cent from around 10,000 to 31,000 units. Another factor is likely to have been cost savings.
The company itself states that the volume has risen, “driven by European product launches.” In other words, the Capri and Explorer electric cars, which have recently been manufactured in Cologne, helped increase sales. The cost of materials also fell, while the net price of the vehicles increased. Ford’s credo for the current year is: “Ford Model e reported a first-quarter EBIT loss of $849 million. The segment remains focused on improving gross margins and exercising a disciplined approach to investments in battery facilities and next-generation products.”
Sales for the company as a whole fell slightly in the first quarter to 40.7 billion dollars (-5% YoY), with the Blue combustion engine division contributing 21 billion dollars, the Ford Pro van division 15.2 billion dollars and Model e 1.2 billion dollars. Ford reported an adjusted EBIT result of 1 billion dollars (-63%). And for the current year, U.S. tariff policy could make successful business even more difficult in Ford’s eyes: Management estimates “a tariff-related net adverse adjusted EBIT impact of about $1.5 billion for full year 2025, subject to ongoing tariff-related policy developments.”
The figures for Model e are encouraging compared to the same period a year earlier. However, they must also be viewed in the context of the situation at the beginning of 2024: Ford reported particularly meagre figures in Q1/2024. At the time, sales fell by 84 per cent, which Ford attributed to ‘industry-wide price pressure’. At the time, the car manufacturer had to use prices to work off full stocks. Losses of 5.1 billion dollars accumulated over the full year 2024. This was even more than in 2023, to which Ford responded with a change of personnel at the head of Model e, among other things.
In its annual review of 2024, Ford stated that it did not expect a turnaround for 2025 either: according to the annual forecast presented at the time, the division was expected to make a loss of USD 5 to 5.5 billion this year. In this respect, the first quarter has probably gone relatively well.
Just yesterday, we also received information that Ford is likely to have discontinued its programme to develop its own next-generation electronics architecture. This was reported by Reuters, citing insiders. The US car manufacturer had previously invested heavily in the software system known internally as FNV4, which was intended as the ‘brain’ for the company’s new smart cars. If the suspension of the programme is confirmed, this should soon be reflected in Ford’s balance sheets.
ford.com (PDF, press release), ford.com (PDF, presentation)
