Ford's Next Generation Of EVs Will Turn A Profit

While automakers are transitioning to electric vehicles at an astonishing rate and investing billions of dollars into the technology, many are struggling to make money on eco-friendly EVs, but the Blue Oval is forging ahead with more EV developments.

Ford has admitted that it islosing money on every electric vehicleit sells. But despite this and several other challenges, the Blue Oval remains committed to electrification, reportsAutomotive News.

CEO Jim Farley has said the next generation of Ford electric vehicles will be less complicated to manufacture than the existing lineup and capable of more software upgrades. This will make them not only more profitable but cheaper to build, too.

While they're not currently profitable, models such as theMustang Mach-Eand F-150 Lightning are instrumental in Ford's future successes. The company says that demand for its electric vehicles remains strong.

However, this pattern of losing money won't last forever. The company says it will make 8% margins on electric vehicles in 2026. This turnaround is expected when Ford introduces its second-generation EV architecture, underpinning a new full-size electric truck and a three-row crossover SUV.

Before that happens, the Dearborn-based automaker projects that itsModel e division will losemore than $4.5 billion this year alone. The company has also had to push back its annual production rate goal of 400,000 EVs to 2024.

"While the path to sustainable profitability may not look quite the same as we previously thought, we're confident in our ability to deliver through a more efficient product design, cost efficiencies, and growth in software and services, which will continue to accelerate," said Jim Farley earlier this year.