### Ford Faces Challenges and Opportunities as EV Unit Posts Significant Losses

Ford Pro has been a bright spot for the automaker recently, with the commercial unit's profits consistently surpassing those of Ford Blue's traditional gas-powered vehicle division in recent quarters. Conversely, Ford's Model e electric vehicle (EV) unit experienced notable financial setbacks, recording a $1.14 billion loss in EBIT last quarter, with projections indicating a $5.5 billion loss for 2024.

Despite these losses, Ford's EV sales have shown growth. The company's third-quarter U.S. deliveries saw a 4.3% year-over-year increase, reaching 504,039 vehicles. This figure, however, fell short of the 536,050 vehicles delivered in the previous quarter. Notably, Ford's EV sales rose 12% year-over-year, bolstered by the performance of the Ford Lightning pickup and Ford E-transit van. Additionally, Ford's hybrid vehicles, particularly the Maverick pickup, saw a significant 38% year-over-year surge.

Investor attention is now turning towards changes in Ford's 2024 full-year guidance. Last quarter, the company maintained its adjusted EBIT range of $10 billion to $12 billion for the full year but boosted its adjusted free cash flow forecast by $1 billion, setting it between $7.5 billion and $8.5 billion.

In contrast, General Motors (GM) has shown stronger financial metrics, consistently raising its guidance each quarter this year. GM's adjusted EBIT now stands at $14 billion to $15 billion, an increase from the previously expected $13 billion to $15 billion. Additionally, GM announced $16 billion in buybacks and share repurchases over the past year, a strategy not yet adopted by Ford.

Ford's EV business continues to be a focal point. CEO Jim Farley and his team are forecasting a $5.5 billion loss in the EV sector for the upcoming year. However, any signs of improvement in this area will be closely monitored. While GM anticipates achieving EV profitability with a positive variable profit margin by the end of this year, Ford remains optimistic about reaching real profitability with the next generation of its EVs. The company plans to provide a comprehensive update on its EV business outlook and profitability in the first half of next year.