Ford Expects To Make Boat Loads Of Cash On Mach E Right Out Of The Gate

Ford’s newly-revealed Mustang Mach E will start producing profit “on vehicle number one,” said Ford CEO Jim Hackett in an interview with Bloomberg after Ford’s Sunday Mach E reveal event.

Hackett specified that the car’s cost of production will be lower than the revenue gained from its sale right from the beginning.  The vehicle line will still have to cover the initial cost of R&D before it becomes “profitable” for the company, but this is true of any vehicle line.

Hackett mentioned that this should surprise many people because “electrics have not had a history of making money.”  We’ve heard this from other manufacturer’s before.  Many make the excuse that they’re dragging their feet on electric cars because “nobody’s making them profitably.”

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Hauerg - 11/19/2019 12:50:01 PM

0 Boost

"cost of production will be lower than the revenue" does NOT translate into making "loads of cash".

Also needing a 98 kWh battery to get the range of your competitor with a 78 or 80kWh pack will not help.

BTW: anybody heard something about the weight of the car?

dumpsty - 11/19/2019 12:59:29 PM

-1 Boost

"...The vehicle line will still have to cover the initial cost of R&D before it becomes “profitable” for the company..."

So....it wont be profitable on the sale of "vehicle 1".

PUGPROUD - 11/19/2019 2:57:33 PM

+2 Boost

Right on, Ford will amortize all development costs over the expected life of the vehicle stretching it out as far as accounting principles allow not to mention the huge marketing expense to get this model kick started.

mre30 - 11/19/2019 1:38:04 PM

+2 Boost

I have put down a $500 (refundable) deposit on a Mach-E GT ('Infinite Blue Metallic Tinted Clearcoat' - fully refundable and unlike Tesla, I have no concerns about getting my money back if I change my mind).

https://www.ford.com/suvs/mach-e/2021/

I wasn't really following the EV Mustang development but I am quite excited about the product. Who knows what the future holds or if it meets expectations but I wanted to get on the list.

CANADIANCOMMENTS - 11/19/2019 7:39:55 PM

-2 Boost

This photo is a concept. The revealed SUV has a grill that rises out of the bumper. It is not a separate piece. Maybe there are models that come with different grill treatments to tell them apart?

atc98092 - 11/19/2019 8:06:04 PM

+4 Boost

That's the grill for the GT model. Not a concept.

MrEE - 11/21/2019 8:01:39 PM

+1 Boost

It just means it has positive margin, and so does model 3 according to independent analysis. Ford will need a good cushion for warranty and recalls.