Meanwhile, it has slashed vehicle production due to chip shortages.
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
Additionally, it will spend $ 7 billion on autonomous driving technology and $ 22 billion on electric vehicles, including the $ 7 billion it has already paid in the last five years.
Some of the new vehicles will be plug-in hybrids (PHEVs), But most will be fully electric, including products like the Mustang Mach-E and the upcoming electrified versions of the F-150 pickup and E-Transit commercial van. Ford also noted that EVs will be “critical” to Lincoln’s luxury. “We are accelerating all of our plans … increasing battery capacity, improving costs, and adding more EVs to our product cycle plan,” he said. CEO Jim Farley in an earnings release.
Ford is happening and so is our leadership in the electric vehicle revolution and the development of autonomous driving. We are now allocating a combined $ 29 billion capital and great talent to these two areas, and serving customers high-volume connected electric SUVs, commercial trucks, and pickup trucks.
Farley, who replaced ex-CEO Jim Hackett last year, added that the “more aggressive” plan is to help Ford become leaders in electric vehicles and autonomous technology. The company has lagged behind its competitors in this area – notably Tesla and to a lesser extent GM – as it was late to bring all-electric cars and advanced self-driving technologies to market.
Ford Delays Some Mustang Mach-E Orders Due To “Quality Checks”
Ford is partnering with other automakers like Mercedes-Benz and Volkswagen for a fully electric future in the face of climate change. The higher investment is also likely a reaction to GM, which recently announced investments in electric and self-driving vehicles of $ 27 billion by 2025.
Ford also recently announced changes in the technology of its vehicles to Android Auto by 2023.
Ford and Nissan will cut vehicle production due to a shortage of chips
Converting to electric vehicles won’t be easy for Ford as by far the most profitable vehicle is the gas-guzzling F-150 range of pickups, which are mainly in the US sold US Ford made $ 1.1 billion on fourth-quarter sales of $ 22 billion but lost all other countries in the world except Europe. Additionally, a chip shortage due to demand for staff forced Ford to throttle F-150 production electronics has spiked due to the COVID-19 pandemic – which could hurt profits significantly over the next two quarters.
Engadget / TechConflict.Com