Business News: Ford will invest $29 billion for Electric and Auto Vehicle Development.
Ford will invest $ 29 billion in electric and autonomous vehicles through 2025, more than double the $ 11.5 billion it promised until 2022 less than a year ago, the automaker announced. Of that, $ 7 billion will be spent on self-driving technology and $ 22 billion on electric vehicles, including the $ 7 billion it has already paid in the past five years.
Some of the new vehicles will be plug-in hybrids (PHEVs), but most will be all-electric, including products like the Mustang Mach-E and upcoming electrified versions of the F-150 pickup and E-Transit commercial van. Ford also noted that electric vehicles will be “core” to the Lincoln luxury brand. “We are accelerating all of our plans … by increasing battery capacity, improving costs and including more EVs in our product cycle plan,” said CEO Jim Farley in an earnings release.
Ford’s transformation is happening and so is our leadership in the electric vehicle revolution and development of autonomous driving. We are now allocating total capital of $ 29 billion and extraordinary talent to these two areas, bringing high volume connected electric SUVs, commercial vans and pickup trucks to customers.
Farley, who replaced former CEO Jim Hackett last year, added that the “more aggressive” plan is designed to help Ford become a leader in electric vehicles and autonomous technology. The company lagged behind rivals in that area, most notably Tesla and, to a lesser extent, GM, as it was lagging behind with fully electric cars and advanced self-driving technology.
Ford joins other automakers, such as Mercedes-Benz and Volkswagen, in their commitment to a fully electric future in the face of climate change. The increase in investment is also likely a response to GM, which recently announced $ 27 billion for investments in electric and self-driving vehicles through 2025.
Ford also recently announced changes to its vehicle technology. Earlier this week, it entered into a partnership with Google, pledging to run its vehicles on Android Auto by 2023.