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Ford’s Mustang Mach-E Profit Wiped Out by Commodity Costs

  • Ford’s traditional vehicles are still paying for EV expansion
  • CFO says carmaker is seeing a rise in auto loan defaults
Ford’s Mustang Mach-E GT
Ford’s Mustang Mach-E GTPhotographer: Michael Nagle/Bloomberg
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Ford Motor Co.’s hot-selling Mustang Mach-E electric SUV and other plug-in models are being rendered unprofitable by rising raw material costs. 

“We actually had a positive bottom line profit when we launched the Mach-E, commodity costs have wiped that out,” Chief Financial Officer John Lawler said Wednesday at the Deutsche Bank Global Automotive Conference, referring to 2020, when the vehicle went on sale. “You’re going to see pressure on the bottom line when we launch our EVs, they’re not going to be positive.”