Company to shift investment from sedans, ICEs to trucks and Ford EVs
Ford Motor Company says it plans to increase its investments in electric vehicles to $11 billion by 2022 when it plans to include 40 hybrid and fully electric vehicles in its model lineup.
The company is upping its investment in electric vehicles from a previously announced target of $4.5 billion by 2020, according to company executives.
Reuters reports that some of the Ford EVs will be produced by the company’s joint venture in China and will be aimed at the Chinese market.
In October, Ford Chief Executive Jim Hackett told investors that the company would cut $14 billion in costs in the coming five years. Ford plans to shift capital investment away from sedans and internal combustion engines (ICEs) to the development of more trucks and electric and hybrid vehicles.
For its 2022 global lineup, Ford executives told Reuters at the Detroit auto show that 16 of the 40 EVs planned will be fully electric and the remaining 24 will be plug-in hybrids.
“We’re all in on this and we’re taking our mainstream vehicles, our most iconic vehicles, and we’re electrifying them,” Ford told reporters. “If we want to be successful with electrification, we have to do it with vehicles that are already popular.”
According to Reuters, SUVs were a prominent part of Ford’s presentation at the Detroit auto show. Jim Farley, Ford’s president of global markets said the company will bring a high-performance electric utility vehicle to market by 2020.
Ford says it will also begin production of a hybrid version of its F-150 pickup truck at a plant in Dearborn, Michigan in 2o2o.
“What we learned from this first cycle of electrification is people want really nice products,” Farley said.
Ford joins GM, Toyota and Volkswagen who have already announced their plans to aggressively expand their EV lineup. Buyers are looking for luxury, performance and an SUV body style.
But, the shift is not just to appeal to consumers. Automakers are under pressure from regulators in China, Europe and California to cut carbon emissions. As well, traditional automakers are looking to compete with newcomer Tesla.
Last year, GM Chief Executive Mary Barra promised investors GM would make money selling EVs by 2021. Barra said the automaker would add 20 new battery electric and fuel cell vehicles to its global lineup by 2023.
VW says it plans to spend $40 billion on EVs, autonomous driving and new mobility services by the end of 2022.
And Toyota is hoping to develop solid state battery technology that would cut the cost of building EVs.
China, India, France and the United Kingdom have recently announced they plan to phase out sales of ICE vehicles powered by fossil fuels between 2030 and 2040.