Ford forecasting $3B loss in electric vehicle division for 2023
Among the changes the Dearborn-based automaker is making is the appointment of John Dion as chief transformation officer.
Ford Motor Company is facing numerous challenges as it continues to adapt to industry changes. The Dearborn-based automaker lost $2 billion in 2022, mainly due to failed investments in EV and autonomous vehicle start ups, and could lose an additional $3 billion on EVs this year.
Ford is also dealing with ongoing production problems. The company issued 67 vehicle recalls in the U.S. in 2022 — more than any other manufacturer.
To address its ongoing issues, Ford is making a number of changes, including revamping the way it reports financial numbers and hiring Lean manufacturing veteran John Dion as its chief transformation officer.
Alan Amici, president and CEO at the Center for Automotive Research, says Dion will be tasked with improving production quality.
“Ford’s ultimate goal would be one of an improvement in productivity,” says Amici. “And the second would be about providing value to the customer.”
Listen: Center for Automotive Research CEO discusses Ford’s position in the auto industry
The transition to electric vehicles is also putting Ford in a unique position with its workforce. Ford CEO Jim Farley has said the company might have over-hired engineers by 25%.
Despite losing money so far, Amici believes Ford’s investment is a good move that will play out in the long term.
“By 2030, approximately 30-40% of vehicle sales in North America are going to be EVs,” Amici predicts.
Trusted, accurate, up-to-date.
WDET strives to make our journalism accessible to everyone. As a public media institution, we maintain our journalistic integrity through independent support from readers like you. If you value WDET as your source of news, music and conversation, please make a gift today.
