Ford’s Model e electric vehicle business segment posted an EBIT loss of $1.1 billion in the second quarter amid ongoing industrywide pricing pressure on first-generation electric vehicles and lower wholesales.

Those factors more than offset about $400 million in year-over-year cost reductions in the segment. Overall, Ford reported second-quarter revenue of $47.8 billion, net income of $1.8 billion and adjusted EBIT of $2.8 billion.

Ford Pro’s second-quarter EBIT was $2.6 billion, an increase of 7% and a margin of 15%. Segment revenue was $17.0 billion, up 9%—three times the rate of growth in product shipments during the period. Demand by commercial customers for Super Duty trucks and Transit commercial vans is outstripping production capacity. The ever-growing popularity of Super Duty and its strategic importance to Ford prompted the decision announced last week to add a third North America assembly plant to assemble the trucks. (Earlier post.)

Second-quarter wholesales and revenue for Ford Blue were up 3% and 7%, respectively, the latter to $26.7 billion. Truck volumes grew and overall pricing was strong. EBIT of $1.2 billion was down from the year-ago quarter, mostly because of the higher warranty costs.

Sales of hybrid vehicles increased 34% and accounted for nearly 9% of all Ford vehicles worldwide—two full points higher than in second-quarter 2023 with more hybrid models of the company’s most popular products on the way.

Outlooks for full-year EBIT are up for Ford Pro, to $9.0 billion to $10.0 billion, on further growth and favorable product mix, and down for Ford Blue, to $6.0 billion to $6.5 billion, reflecting higher warranty costs than originally planned.

An anticipated full-year loss of $5.0 billion to $5.5 billion for Ford Model e is unchanged, with continued pricing pressure and investments in next-generation electric vehicles.