“Ford Model e” division
“Ford Blue” division
“Ford Blue” division
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Ford Creates Separate EV and ICE Businesses
- Thread starter E365
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Easier to jettison underperforming divisions.
Sounds like Ford is getting serious... Competing for scarce resources... Clean sheet of paper...
If they operate like separate Business Units, they should disclose discrete financials.
As an analyst, I want to see margins.
Good luck Ford!
If they operate like separate Business Units, they should disclose discrete financials.
As an analyst, I want to see margins.
Good luck Ford!
4WD
$50 site donor 2024
Maybe - but engineering and manufacturing are quite different … Good start IMO …
In other words Ford's Blue Division hopes to generate enough profit to continue to design, build and sell their ICE vehicles and support their dealer network, advertising, cover the costs of recalls which Ford seems to be a leader in, and other outdated business models and also have money left over to pump into their Model E division to design, build and sell EV's.
I wish them luck. Not sure how they will do that when the profit margin on their ICE vehicles is only about 1/3 (at very best) of what Tesla makes on their one and only vehicle division.
I wish them luck. Not sure how they will do that when the profit margin on their ICE vehicles is only about 1/3 (at very best) of what Tesla makes on their one and only vehicle division.
4WD
$50 site donor 2024
Oh yeah - would it matter what they do in your mind ? Not really, huh ?
Owen Lucas
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How ironic would that be considering the big 3 was fighting so hard against the direct to consumer model.
More likely the other way around, but not for a looong time, maybe 20 years until heavy trucks can reliably and cost effectively go electrics.They will be able to jettison the e vehicle division quickly and easily when the fad dies down. /and the losses won't hurt the ice vehicle company.
I'm not an accountant but I've heard having separate divisions helps with tax loss harvesting where if one performs poorly, you can take credit for losses in the higher performing division, allowing you to save taxes. I probably didn't explain that correctly but I'm sure there are many financial benefits.
They just announced to us that we are supposed to return any car chargers we may have in stock. Thankfully I never had any because my orders were cancelled.
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To me it sounds like a lack of confidence in the new venture. My conjecture, as is your statement. My uncle is late 70's and has been retired for many years. He was a Tenneco gas exec in Houston and he was enticed to New England to be a VP of a gas company. He was there in that capacity for about 12 years. He was tasked with starting an offshoot company under the corporate umbrella. Three years later he had successfully done his job.
He knew the heave-ho was coming as the new company was solidified and there wasn't much more to do. The day came at a financial meeting and he was given an award and told, you've really outdone yourself and we appreciate that. BUT we recognize one issue with the financials of the company and that is your salary. He had already drafted a severance package to offer. There was some bickering over the company car he wanted to keep but that was it. They accepted it all and he retired for good.
Sounds more like a venture to me.
Why not just call one of the divisions Mercury?
Ford will invest billions into the e Business Unit. If the e BU fails, it could be curtains for Ford.They will be able to jettison the e vehicle division quickly and easily when the fad dies down. /and the losses won't hurt the ice vehicle company.
Interesting point... Could be a struggle with dealer contracts? As in lawsuits? And what about the states that are dealership centric?
Ford's CEO did say Tesla's business model and execution are a huge advantage; direct sales, vertical integration, etc resulting in their margins, which are at least 4 times better than Ford's. Not to mention the factories production output speed.
My guess is, Ford knows they cannot compete with Tesla on price; Tesla could dramatically drop their prices, remain profitable, and put the squeeze on Ford, or any other competitor.
Again, interesting.
NADA was fighting it even harder.
There just isn't room for them and their margin if Ford wants to be competitive.
Lets get real - aside from a few family owned branches by and large customers hate them and for good reason - they have a well documented history of raping their own clients.
Somethings got to give.
Contray to what some think, I do believe that other automakers entering the EV market is a good thing. Competition will keep all of them on their toes.
I was just pointing out how Ford's plan may sound good at first glance, they, like other legacy automakers will really need tens of billions of dollars in capital and an effort similar to what the US launched with our manufacturing might to win WWII in order to catch up. Is that even possible today ?
Ford expects to sell 2 million EV's by 2026 in what will really be their sophomore effort. By 2026 Tesla will likely have another 4 factories rolling out vehicles that have long had the bugs worked out of them. And will easily sell 3 or 4 million per year. Maybe a lot more if they put some effort into producing a very inexpensive EV for the emerging market in Asia and the Indian subcontinent.
I was just pointing out how Ford's plan may sound good at first glance, they, like other legacy automakers will really need tens of billions of dollars in capital and an effort similar to what the US launched with our manufacturing might to win WWII in order to catch up. Is that even possible today ?
Ford expects to sell 2 million EV's by 2026 in what will really be their sophomore effort. By 2026 Tesla will likely have another 4 factories rolling out vehicles that have long had the bugs worked out of them. And will easily sell 3 or 4 million per year. Maybe a lot more if they put some effort into producing a very inexpensive EV for the emerging market in Asia and the Indian subcontinent.
I think it’s to take advantage of the various incentives being put forth.
Financial engineering huh? So they can cash out on one side without dragging the other side down. Us working bees will likely never be able to pull these kind of manipulation off and make billions just playing with spreadsheets.
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