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Ford plans to produce 2 million EVs annually, generate 10% operating profit by 2026

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Ford began pre-production at its new Dearborn plant for the electric F-150 Lightning pickup trucks.

Michael Wayland | CNBC

Ford MotorCompany announced Wednesday that it plans to manufacture more than 2,000,000 electric vehicles per year and achieve a 10% adjusted operating margin by 2026. larger restructuringIts legacy and EV businesses.

The company would have to increase its current operating profits by at least 5%. Ford recorded a 7.3% adjustment to its operating profit for 2021. Ford sold only 27,140 all-electric vehicles. Mustang Mach E crossoversThe U.S. will be 2021. An international EV sales total was not available immediately.

Ford has reorganized its operations in order to seperate the electric- and internal-combustion engines businesses as part of its restructuring plan into different units within the automaker.

Ford and the other big automakers are taking steps to increase production to make EVs more affordable for consumers. They want to keep up with demand and not play catchup like they did for the EV industry leaders. Tesla.

Ford CEO Jim Farley stated that, “We don’t want to defeat the old players. We want to win the new players.” He spoke at an event on Wednesday morning.

Ford’s shares were roughly up 3% in pre-market trades. Ford shares closed at $16.70 per share on Tuesday, down 4.9%

Farley Wednesday stated that Ford plans to reduce its structural costs by $3 billion, mostly from the traditional internal combustion engine division. This will allow Ford to meet its 10% margin. This will be achieved while increasing sales and lowering the prices of materials used in EV construction.

Ford’s plans are very similar to those of its biggest crosstown competitor. General Motors. According to Detroit’s automaker, it will continue its plans for the future. double its annual revenueIncrease margins from 12% to 14% to 2030. The company also intends to expand its plant capacity to produce. 2 million EVs globallyBy 2025, North America and China

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