DETROIT — Ford expects 40% of its global sales to be battery-electric vehicles by 2030 as it adds billions to what it’s spending to develop them. In a presentation for investors Wednesday, the automaker said it will add about $8 billion to its EV development spending from this South Korea. Under former CEO Jim Hackett, analysts criticized Ford for on its turnaround and future vehicle plans. But those plans have accelerated under CEO Jim Farley, who took over last August.to 2025. That brings the total spend to nearly $20 billion as Ford develops and builds batteries in a joint venture with SK Innovation of
“Today shows, not tell time, for the Ford team,” Farley said at the presentation’s start. electric vehicle sales target will come from Europe, where the company has pledged to convert its entire passenger vehicle lineup to electric power by 2030.liked what it heard, and shares surged 8.5% to $13.90 in afternoon trading, a level not seen in about five years. platforms for pickup trucks, commercial vehicles, and SUVs, such as the Ford Explorer. It also said smaller European cars would be built on underpinnings from Ford partner Volkswagen. But company executives wouldn’t explain when the new electric vehicles will go on sale. Much of the 40%
The global auto industry and government policymakers are trying to pivot away from internal combustion to battery power to curb General Motors, hopes to stop selling combustion vehicles by 2035. In addition, shareholders at Exxon Mobil voted Wednesday to replace at least two of the company’s 12 board members with directors better suited to fight .. Some European countries and California plan to phase out petroleum-powered vehicles, while promises to spend billions on charging stations and tax credits and rebates to get people to switch. Ford’s crosstown rival,
Farley said Ford’s financial performance hasn’t been acceptable in company is now generating cash flow to grow the scale of its electric and commercial vehicle businesses. Ford predicted it would margin in 2023. The company also Ford Pro business, focusing on commercial and government fleet buyers. It expects the by 2025, up from $27 billion in 2019., but it has accelerated its turnaround plan and made progress in the past few quarters. He said the
It also expects to have about 1 million vehicles capable of getting over-the-internet software updates by theof this year. Ford says it will have more cars with that capability than Tesla by July 2022. Ford said this opens up the chance to add revenue through driver assist technology and digital , a $20 billion market by 2030.
In the U.S., Ford’s largest market, electric vehicles, are only 1.2% of Ford’s sales through April. Ford currently offers only one all-electric car, the Mustang Mach-E SUV, but it will have an all-electric F-150 pickup and a battery-powered Transitspring. The company said 70,000 customers have put down $100 deposits to reserve an electric F-150 in the week since it was unveiled. Ford’s F-Series pickup is the top-selling vehicle in the U.S.
Ford said it plans a new rear-drive, all-wheel-driveand other larger SUVs with two and three rows of seats. The company also plans additional cargo vans and pickup trucks from the new architecture. Hau Thai-Tang, the company’s product development chief, expects one-third of pickup truck sales to be fully electric by 2030. Lisa Drake noted that by making electric versions of its top-selling brands, the Mustang, F-150, and Transit van, Ford could bring bulk purchasing power to EVs that smaller startups can’t.
She said 70% of Mustang Mach-E electric SUV international businesses, including Europe, China, and South America, lost over $2 billion per year for the past two years but, in the first quarter, generated a $500 million profit.brands, proving that EVs will help Ford increase its sales. Ford, she said, $140 per kilowatt hour to under $100 by 202 and $80 by the end of this decade. As an example of its turnaround plan taking hold, Chief Financial Officer John Lawler said
Lawler wouldn’t commit to when Ford would restore its dividend, suspended at the coronavirus pandemic’s start. He said the company is focused on investing in growth areas and will return the prize “as soon as practicable.” The $8 billion in additional electric vehicle spending would go toward the joint venture with SK Innovation to develop and manufacture batteries announced say they have signed a memorandum of understanding, but details on the ownership structure and factory locations have yet to be worked out.. By the middle of this decade, the experience will build two factories to make batteries for roughly 600,000 electric vehicles annually. The companies