Ford to invest $50 billion in electric vehicle sector to compete with Tesla

Published: Updated on – 12:45, Thu – Mar 3, 22

The automaker aims to produce more than 2 million electric vehicles a year by 2026, which is about a third of Ford’s global volume, which will rise to half by 2030.

San Francisco: In its bid to catch up with Elon Musk-led Tesla, Ford Motor Company has announced it will increase its investment in electric vehicles (EVs) to $50 billion through 2026, from the previously announced $30 billion by 2025. .

The automaker aims to produce more than 2 million electric vehicles a year by 2026, which is about a third of Ford’s global volume, which will rise to half by 2030.

Ford said it would create separate electric vehicle and internal combustion businesses to compete and win against both new EV competitors and established automakers.

The company plans to spend $5 billion on electric vehicles in 2022, including capital expenditures, out-of-pocket spending and direct investment, a doubling from 2021, the automaker said in a statement Wednesday.

“This isn’t the first time Ford has reinvented the future and charted our own course,” Ford executive chairman Bill Ford said.

“We have an amazing opportunity to lead this exciting new era of connected and electric vehicles, bring the best of Ford to our customers and help make a real difference to the health of the planet,” he added. .

Ford reiterated its commitment to achieve carbon neutrality by 2050 and to use 100% local and renewable electricity in all of its manufacturing operations by 2035.

Last May, Ford Chairman and CEO Jim Farley outlined the Ford+ plan, calling it the biggest opportunity for growth and value creation for the company since Henry Ford ramped up production. of the T model.

The formation of two distinct but strategically interdependent automotive businesses, Ford Blue and Ford Model e, as well as the new Ford Pro business, will help unlock the full potential of the Ford+ plan.

“We’re going all out, building separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model e along with industry know-how, volume and iconic Ford Blue brands like Bronco, whose startups can only dream,” said the CEO. Jim Farley.

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