Submitted by EW234 t3_11zj7dz in technology
dont-YOLO-ragequit t1_jdetv4p wrote
Reply to comment by Badfickle in Ford says EV unit losing billions, should be seen as startup by EW234
This is exactly where they wanted to be.
10 years ago, Ford would have had to make a very different looking vehicle with unimpressive fuel range, and a push to have an infrastructure for electric charging.
Tesla managed to do all this and party tricks and Cellphone back and forth at the expense of build quality.
Now Ford and others manufacturers have most of the political backing and infrastructure to make better built car with price per volume and better manufacturing techniques inside a conventional looking vehicle.
The big manufacturers didn't want to fail such a niche plan, meanwhile, a Startup like Tesla had everychance of succeding or failing. And it succeeded.
Badfickle t1_jdf0eys wrote
>This is exactly where they wanted to be.
And that is why they are failing.
The Tesla build quality has improved considerably in the last few years. The Model 3 is now one of the most reliable EVs you can buy. The model Y has also improved greatly.
Where the other manufacturers are aspiring to in 3-5 years is where Tesla was 5 years ago. Toyota recently did a teardown of a model y and came to the conclusion that Tesla had superior manufacturing and that Toyota needs to completely rethink its process if wants to keep up.
https://www.autonews.com/manufacturing/how-toyotas-new-ceo-koji-sato-plans-get-real-about-evs
If legacy doesn't get its act together and fast a bunch are going out of business.
dont-YOLO-ragequit t1_jdfj2kr wrote
>Ford Blue, the unit that sells internal combustion and gas-electric hybrid vehicles, made just over $10 billion before taxes during the last two years. Ford Pro, the commercial vehicle unit, made $5.9 billion during those years, the company said.
They litterally said they resplit their companies from regions to products to show how their bread an butter(the one with 20+ models is stil profitable while the one that is developing (the one with 3 models with a ton of R&D) is the one with debt. They still make 16bn on ICE cars and trucks while losing 3bn on models not even 2 years old.
If I'm reading between the lines, the division with all the growth is losing money as all the R&D is overhead cost and the sales are starting to return revenue.
Ford gets to tell their investors that they are making good money by putting all the rightful debt spendings on EVs while their earnings numbers are untouched.
Even in the report it says they expect EVs to drag on a short to mid term basis.
isayporschewrong t1_jdn0vtu wrote
> If legacy doesn't get its act together and fast a bunch are going out of business.
How exactly are they going to go out of business? Do you not understand how auto manufacturers make profit?
Badfickle t1_jdn9d6m wrote
It is remarkably simple. Sales of your profitable ICE cars implode while you are still unable to mass produce EVs for a profit. Something which only Telsa and BYD have managed so far.
Not everyone is going to successfully make the transition. There will be bankruptcies, government bailouts and or mergers along the way.
isayporschewrong t1_jdnalnt wrote
I guess what I'm struggling with here is the "sales of your profitable ICE cars implode"... I might be missing some legislation that's been passed recently, but why is this going to happen?
Badfickle t1_jdnv0dr wrote
As EV prices continue to come down it will no longer make economic sense for consumers to purchase ICE vehicles.
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