Automotive giant Ford announced a major increase in its commitment to vehicle electrification, pledging to nearly double its investment in EVs to at least $22 billion by 2025. Announcing the increased investment plans with the release of the company’s FY 2020 results, Ford President and CEO Jim Farley said the company is “all in” on developing and delivering connected electric vehicles and services in mainstream areas of strength for Ford, including pickups, commercial vans and SUVs.
“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.”
Ford’s announcement follows significant growth in electrification investments and in EV sales across the automotive industry. In Europe, electric and plug-in hybrid vehicle sales crossed the 1 million unit mark in 2020, representing 10% of overall sales, while internal combustion engine (ICE) units fell sharply. Last month, Ford rival GM also increased its EV investment plans, and announced ambitious commitments to become carbon neutral by 2040 and to work towards eliminating tailpipe emissions by 2035, based on its vision of an all-electric future.
Ford said that the company recognizes the major trend towards electrification and will invest as necessary to maintain its dominant position in key vehicle segments.
On a conference call with analysts discussing the Q4 2020 results and the company’s investment plans, Farley said:
“We watched one out of 10 vehicles sold in Europe in December be pure electric. EV sales in China continue to grow and the reality is the customers, including in the US, are increasingly giving E-mobility greater consideration.
“We have no intention to cede ground to others in vehicle segments, where Ford is the established leader. We are rapidly building on our electric vehicle plans and building out our manufacturing and our R&D capabilities. We’re also increasing financial flexibility, so we can accelerate and flex to keep pace with the evolving EV needs of our customers.”