Ford (F) EV Issues Profit Warning Amid Surging Commodity Prices
Aa
Share
Summary:
- Ford F issued a profit warning last week.
- Ford's historic BlueOval City facility in Tennessee has begun building.
Ford (F) motor company
The electric vehicle (EV) revolution is accelerating, and businesses are scrambling to gain a firm foothold in this market. Investing in e-mobility is increasing, and traditional automakers have ambitious goals for electrifying their fleet. As work got underway at its BlueOval megacampus for EV expansion, Ford F stole the show. The corporation plans to produce 600,000 EVs annually by the end of the current year and 2 million by the end of 2026. To achieve the goals, the BlueOval City unit will undoubtedly help scale up EV production.
Ford's historic BlueOval City facility in Tennessee has begun building. It is anticipated that in 2025, production of cutting-edge batteries would start for Ford and Lincoln EVs, including the F-150 Lightning and a second brand-new battery-electric pickup. The land's preparation already started in March, and it has made good progress thus far. Since it propels Tennessee to the front of the EV race, the development is notable for Tennessee as well. A vehicle assembly factory, a battery plant jointly run by Ford and SK, as well as supplier facilities and battery recycling operations, will all be located in BlueOval City. Once manufacturing starts, the facility is anticipated to have 6,000 employees by 2025.
In a memorandum of understanding signed less than a year ago, Ford and the South Korean battery manufacturer SK On committed a staggering $5.6 billion to the construction of the highly advanced plant. The facility serves as a launchpad for Ford's next electric vehicles, which the company expects to create a stir in the EV industry.
Ford profit warning
On the news front, Ford F, the world's largest automaker, last week issued a profit warning. It anticipates lower third-quarter profitability in 2022 due to rising inflationary pressure and commodity cost headwinds brought on by increased supply chain bottlenecks. The auto sector has been crippled by the ongoing microprocessor shortage, which is strangling supplies and causing automakers to get anxious. High pricing for raw materials are a challenge for businesses. This supply-chain turmoil is anticipated to last well into 2023 as well as through 2022.
Ford Price Chart
Sources: finance.yahoo.com
