- On Monday, Ford Motor will aim to convince doubters of its electric vehicle expansion plans, which have been labeled as "ambitious" and "crazy high" by certain Wall Street analysts. The Detroit automaker, will hold its capital markets day, where it plans to disclose the specifics of how it intends to meet its previously announced objectives of achieving an 8% EBIT margin on its electric vehicle unit and ramping up production to a run rate of 2 million EVs by 2026, surpassing the anticipated 600,000 by year-end.
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The upcoming event, named "Delivering Ford+," reflects Farley's ongoing efforts for turnaround and restructuring, which have faced criticism for not being implemented swiftly. Farley unveiled the plan in May 2021, seven months after assuming his position. Ford is also anticipated to provide a glimpse of its second-generation battery products and technology, which the company considers vital for attaining the targeted 8% EBIT margin. The electric vehicle business is projected to incur a loss of approximately $3 billion in the current year.
Why it matters
During the capital markets day, Ford aims to demonstrate the progress of its strategy. They will discuss the profitability of their traditional businesses, "Ford Blue" and "Ford Pro," along with their electric vehicle unit, "Model e." Ford will also provide a preview of their second-generation battery products and technology, crucial for achieving the 8% EBIT margin. However, the EV business is expected to incur a $3 billion loss this year.
