Those losses exceeded even the most dire forecasts and forced the company to rethink its electric vehicle strategy.
Ford has begun cutting orders from battery suppliers such as SK On, LG Energy Solution and CATL to reduce assembly losses, according to sources close to the company.
The company also plans to cut costs by $12 billion, slow production of new electric vehicles, cut prices and delay construction of new battery factories.
As a result, Ford predicts losses in the electric vehicle sector could reach $5.5 billion by 2024.
The main reason for these losses is the sharp decline in electric vehicle prices and falling demand, which has led to the cost of producing a car exceeding the revenue from its sale.
This trend is causing concern among analysts, who are beginning to question the wisdom of major investments in electric vehicles.
Source: Ferra
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