financetom
Business
financetom
/
Business
/
Ford asks suppliers to cut costs in push to turn EV business profitable, memo says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Ford asks suppliers to cut costs in push to turn EV business profitable, memo says
May 16, 2024 1:40 PM

May 16 (Reuters) - Ford Motor Co ( F ) has asked its

electric-vehicle suppliers to reduce costs in an attempt to

support profitability, saying "everything is on the table,"

according to a company memo seen by Reuters.

Discounts and sharp price cuts from competitors, including

EV market leader Tesla, to sustain consumer demand amid

high interest rates have forced Ford to reciprocate. To

re-ignite demand and stave off competition from Chinese

automakers such as BYD, analysts have said EV makers

need to introduce vehicles that are affordable to the masses.

"Everything is on the table. Consider this a call to

action," Liz Door, Ford's chief supply-chain officer, said in

the memo, which was earlier reported by Crain's Detroit

Business.

"It is in our best interests that we are able to deliver

affordable EV products to our customers," Door added. "To ensure

affordability, it is of paramount importance that our portfolio

achieves further levels of material cost efficiency."

In response to a request for comment, Ford said it was

focused on building a profitable EV business. "We value our

suppliers' collaboration and asked them to share their ideas for

cost reductions," the company said in a statement.

Door asked suppliers to ensure efficient manufacturing

operations and reduce capital spending. She also called for

further cost-reduction proposals on such vehicles as the Ford

F-150 Lightning electric pickup truck, Transit electric van and

Mustang Mach-E SUV, to be presented in face-to-face meetings

soon, including ideas that might require investment but support

profitability.

The Dearborn, Michigan-based automaker recorded a $1.3

billion operating loss for its EV and software division in the

first quarter. Executives expect this section of the company to

sustain a pretax loss of between $5 billion and $5.5 billion for

the year.

While Ford continues to develop affordable and smaller EVs

by a "skunk works" team in California, the company in the near

term is focusing on boosting sales of hybrid vehicles, which are

preferred by many consumers, before adopting fully

battery-powered cars.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Norway's Statkraft selling renewable assets in Colombia to Ecopetrol
Norway's Statkraft selling renewable assets in Colombia to Ecopetrol
May 26, 2025
BOGOTA (Reuters) -Colombian state-run oil company Ecopetrol said on Tuesday it agreed to buy 10 wind and solar energy project development companies from Norway's Statkraft, in an exit from the Andean country. Ecopetrol Chief Executive Ricardo Roa said the portfolio of projects could total up to 1.3 gigawatts in capacity, which will be used to supply Ecopetrol's domestic energy needs....
Apex Group Buys Majority Stake in Tokenization Specialist Tokeny as RWA Trend Soars
Apex Group Buys Majority Stake in Tokenization Specialist Tokeny as RWA Trend Soars
May 26, 2025
Apex Group, a financial services provider with more than $3 trillion in assets under administration, said on Tuesday it had acquired a majority stake in Tokeny, a Luxembourg-based firm that helps institutions tokenize real-world assets (RWA) on public blockchains. According to the deal, Apex expects to take full ownership of Tokeny over the next three years, after first investing in...
Argentina approves $2.5 billion Rio Tinto lithium mining project
Argentina approves $2.5 billion Rio Tinto lithium mining project
May 26, 2025
BUENOS AIRES (Reuters) -Argentina's government on Tuesday approved a $2.5 billion lithium mining project by Anglo-Australian giant Rio Tinto, marking the first mining project under a new investment incentive regime. The approval of Rio Tinto's Rincon project, located in the northern Salta province, under the RIGI incentive scheme was announced by the country's mining and energy coordination secretary Daniel Gonzalez...
Copyright 2023-2026 - www.financetom.com All Rights Reserved