Ford “all in and will not cede ground to anyone” with $29 billion EV and AV investment
Ford has come out swinging with a promise to lead electric vehicle and self-driving technology development with a US$29 billion ($37.5 billion) investment.
The US brand announced its promised substantial increase in EV and PHEV (plug-in hybrid) spending at its 2020 fourth-quarter and full-year financial results presentation. President and CEO Jim Farley said Ford “will now invest at least $22 billion in electrification through 2025, nearly twice what the company had previously committed to EVs.”
A further $7 billion would be invested in autonomous vehicles “over 10 years through 2025 – $5 billion of that from 2021 forward,” as part of its Ford Mobility initiatives.
Mach-E on the road
The announcement comes as US deliveries of the electric Mustang Mach-E SUV have begun, with its E-Transit electric van following later this year, and an all-electric F-150 pickup to land by mid-2022.
While Ford Australia has not confirmed if the Mustang Mach-E is coming here, its chief engineer, Ron Heiser, has previously told media it will be sold in Australia. It’s already been confirmed for the UK, a fellow right-hand drive market. Whether the The F-150 and Transit EVs will land in Australia anytime soon is less clear.
Ford’s announcement is hot on the heels of its legacy brand rival, General Motors, last month saying it would stop building petrol and diesel cars by 2035 and, according to reports, would spend $27 billion on EV investment between 2020 and 2025.
European auto giant Volkswagen is another flexing its EV muscles with a multi-billion-dollar push into the electric car space, aiming to trump Tesla’s EV volume and tech by 2023.
Transformation is happening
Followers of Ford’s ever-increasing noise and dollars for EVs will recall last November the legacy brand announced it was throwing more cash and jobs at its Kansas City assembly plant, aimed at meeting the expected large demand for its electrified offerings.
“The transformation of Ford is happening and so is our leadership of the EV revolution and development of autonomous driving,” Farley announced, “bringing customers high-volume, connected electric SUVs, commercial vans and pickup trucks.”
While announcing Ford’s intention of “doubling down on connected EVs,” Farley said his company was “all in and will not cede ground to anyone” in developing and delivering connected electric vehicles and services in mainstream areas of strength for Ford: pickups, commercial vans and SUVs.”
Taking on Tesla
In a battlecry aimed at those pesky EV upstarts – Tesla included – Farley added: “We are accelerating all our plans – breaking constraints, increasing battery capacity, improving costs and getting more electric vehicles into our product cycle plan. People are responding to what Ford is doing today, not someday.”
At time of writing, Tesla was valued at $863 billion, nearly 20 times that of Ford’s $46 billion.
Ford-owned luxury brand Lincoln was also set for an electric boost with Farley saying EVs would be fundamental to its future range, while the electric Transit commercial lineup would be expanded with a variety of body styles and custom interiors.
Ford’s investment in EV startup Rivian also looks to be reaping rewards. It was on course to earn $8 billion to $9 billion in adjusted EBIT (earnings before interest and taxes), including a $900 million non-cash gain on its investment in Rivian.
