Ford commits $29 billion to electric and vehicle that is autonomous

Ford will invest $29 billion in electric and autonomous vehicles through 2025, more than double the $11.5 billion it promised through 2022 less than a year ago, the automaker announced. Of that, it shall spend $7 billion on self-driving tech and $22 billion on EVs, including the $7 billion it has already paid over the last five years.

Some for the brand new cars will likely be plug-in hybrids (PHEV), but the majority may be all-electric, including items like the Mustang Mach-E and future electrified versions regarding the F-150 pickup and e-Transit van that is commercial. Ford also noted that EVs will be “fundamental” to the Lincoln luxury brand. “We are accelerating all our plans… increasing battery capacity, improving costs and getting more electric vehicles into our product cycle plan,” CEO Jim Farley said in an earnings release.

The transformation of Ford is happening and so is our leadership of the EV revolution and development of autonomous driving. We’re now allocating a combined $29 billion in capital and talent that is tremendous both of these areas, and bringing clients high-volume, linked electric SUVs, commercial vans and trucks.

Farley, whom replaced ex-CEO Jim Hackett a year ago, included that the “more aggressive” plan is made to assist Ford be a leader in EVs and technology that is autonomous. The company has lagged behind rivals in that area — particularly Tesla and to a lesser extent GM — as it was late to market with fully electric cars and advanced tech that is self-driving.

Ford is joining other automakers like Mercedes-Benz and Volkswagen in investing in an future that is all-electric the face of climate change. The higher investment is also likely a response to GM, which recently announced $27 billion in electric and vehicles that are self-driving through 2025.

Ford has additionally recently revealed alterations in the technology inside its cars. Previously this week, it joined a partnership with Bing, investing in run its cars on Android car by 2023.

Pivoting to EVs won’t be easy for Ford, because it’s most vehicle that is profitable far is the gas-guzzling F-150 pickup truck lineup, sold mostly in the US. Ford made $1.1 billion stateside in Q4 on revenue of $22 billion, but lost money every else in the global globe except European countries. In addition to that, Ford had been forced to curtail F-150 manufacturing as a result of a chip shortage, as interest in individual electronic devices has surged because of the COVID-19— that are pandemic that might somewhat curtail its earnings throughout the next two quarters.

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