Ford has confirmed that their EV unit will not be profitable until their second-generation vehicles start arriving in 2026.
The profit for the company continues to come through its ICE brands via the Bronco, Mustang and the F-series trucks. However, the company expects that their EV side of the house will break even over the coming years.
Per Marin Gjaga, Chief Customer Officer of Ford Model e, in an interview with the Detroit Free Press, the company has a set plan for the EV side and is on track to become profitable by 2026.
“We are not profitable at this moment. We’ve committed to being profitable in ’26. We’re currently on the plan. Ford, as a whole, is profitable and throwing off cash that enables us to make that investment. We’re investing in a new part of our business…we’re investing in new products. We will do that, and we can do that.
The development of a dedicated EV platform and increased production capability will help drive that profit line on the EV side. This week the automaker committed to increasing production of the Mustang Mach-E to 130,000 units annually.
Ford also announced this week that the company would start reporting on each business unit’s financials beginning this year. So, now is the time for the EV unit to start showing progress or at least a path toward profitability for both the company and investors alike.