Ford ‘teach in” Explains $3b EV Loss, Trading Jag Franchises for Land Rover Inventory, 2025 Electric Air Taxis

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

There is lots of action this Friday as we talk about Ford’s ‘teach in’ where it thoroughly explained its $3B EV Loss. We also talk about JLR offering Dealers more Land Rover Inventory for closing their Jaguar stores, as well as United Airlines first Air Taxis coming in 2025.

• Ford held a “teach in” yesterday to explain their new reporting structure to an audience of mostly reporters, which was perfect, because they started by explaining that they are set to lose $3B just this year on EVs. Last year’s loss was $2.1B
  • They also reported $7B in earnings from their Ford Blue Division and $6B from Ford Pro
  • Last year the company changed their financial reporting structure to focus on the various business units vs. performance in different regions. This was the first time that Ford publicly released results in this manner
  • CFO John Lawler reiterated, "Ford Model e is an EV startup within Ford, and as everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share."
  • Speaking of recent hires from Tesla, Doug Field and Alan Clarke “It’s about the talent we have,” Lawler said. “We all know there is one profitable EV manufacturer. The folks that designed those vehicles are at Ford.”

What will luxury Dealers give up to get their hands on more of that high-margin luxury inventory? If you’re a Jaguar Dealer, you may be tempted to give up your Jaguar Franchise.

• • According to reports JLR has begun reducing stores by as many as 40 as reported in AN citing a Dealer source who wanted to remain anonymous
  • Manhattan Dealer Jonathan Soble closed his Jag Franchise in February but retains the ability to service Jags. He is using the extra showroom space for more Land Rovers
  • In Europe, Jaguar is shifting upmarket with three all-electric ultraluxury SUVs on its exclusive Panthera platform, starting at around $122,000.
  • The brand's dealership footprint could look more like that of ultraluxury brands it aspires to compete against such as Aston Martin and Bentley, which have fewer than 50 US dealerships.
• United Airlines is working to launch the first commercial electric air taxi route in Chicago by 2025.
  • The air carrier is partnering with Archer Aviation as a part of its intentions to go 100% green by 2050.
  • The first proposed route will use Archer’s Midnight electric VTOL air taxi between O’Hare International Airport and Vertiport Chicago, the largest vertical take off and landing facility in North America.
  • The trip will take about 10 minutes, as compared to upwards of an hour during rush hour, and will operate at “pricing that is competitive with ground-based ride share.”

Hosts: Paul J Daly and Kyle Mountsier
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