Ford Aims to Beat Chinese Brands with Small EVs Using Chinese Batteries

Ford is doubling down in its partnership with Chinese-based battery manufacturer CATL to build small, affordable electric vehicles in the US. Ford's $3.5-billion EV battery factory going up in Marshall, Michigan, about 100 miles west of Detroit, uses technology and services from CATL. Altogether, Ford Motor posted second-quarter revenue of $47.8 billion, net income of $1.8 billion, and adjusted earnings of $2.8 billion. Ford's electric-vehicle business unit's $1.1 billion loss for the quarter is the same as its loss for the second quarter of 2023, and EV sales were down from the first quarter, though Ford remains number-two after Tesla in the US. But Ford is doubling down in its partnership with Chinese-based battery manufacturer CATL to build small, affordable electric vehicles in the US. The Ford Model e team is "Getting much more scrappy" at cutting costs on its next generation of EVs, CEO Jim Farley told Wall Street analysts in the automaker's second-quarter earnings call Wednesday. For the first half of the year, Pro's EBIT is $5.6 billion, up 15.9%. When Ford split its business in three a few years ago, its Blue unit net income levels were about equal to that of Pro, but the Pro commercial business has since been pulling well ahead. Ford can't build enough Super Duty trucks and Transit vans to meet demand. Ford Blue's EBIT for the first half was $2.1 billion. Altogether, Ford Motor posted second-quarter revenue of $47.8 billion, net income of $1.8 billion, and adjusted EBIT of $2.8 billion. Related Story Ford Pro now has more than 765,000 paid subscriptions he said, adding, "We're targeting $1 billion in revenue next year for software." Ford seems convinced small EVs are the path to a sustainable battery-electric market.