Ford Motor decided to increase its EV spending by up to $50 billion. This is around a 60% increase from its previous electric vehicle spending, which is $30 billion.
Workers assemble cars at the newly renovated Ford's Assembly Plant in Chicago, June 24, 2019. - The plant was revamped to build the Ford Explorer, Police Interceptor Utility and Lincoln Aviator. (Photo by JIM YOUNG / AFP)
The giant automaker said that the latest spending increase on its zero-emission cars will last until 2026. This means that it will still change depending on the revenues Ford will generate from its EV models.
On the other hand, Ford Motor Inc. also announced that it now has separate divisions for its traditional car and EV productions.
Ford's EV Spending Increases
According to Reuters' latest report, the increased EV budget of Ford Motor shows that the electrification strategy of the company's Chief Executive Jim Farley is now becoming more serious.
An employee walks past a Ford logo in the yet-to-be-completed engine production line at a Ford factory on January 13, 2015 in Dagenham, England. Originally opened in 1931, the Ford factory has unveiled a state of the art GBP475 million production line that will start manufacturing the new low-emission.
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The automaker's financial change is also expected to enhance the company's EV production, allowing it to produce more than 2 million electric cars in 2026.
The sudden EV spending increase is also possible, thanks to the rising Ford shares. On Wednesday, Mar. 2, the car maker's shares increased by 7.2%.
Because of this, the company's shares are now $17.90. Although Ford Motor is focusing on its EV transition, the automaker's Chief Financial Officer John Fawler said that the car developer will not really benefit from its electric cars until its 2025 production begins.
Ford Model E, Ford Blue
Aside from increasing its EV spending, Ford Motor also confirmed that it now has two separate production divisions for its traditional cars and electric vehicles.
These are specifically the new Ford Blue (gas-based cars) and Ford Model E (electric cars) divisions. This is just one of the major efforts made by the company as it transitions to EV making, as reported by Crunchbase News.
Back in 2019, the automaker invested in Rivian, which is one of the rising electric truck makers in the car industry. It also invested in the electric cell company Solid Power.
In other news, Ford's driverless parking assistant feature is now rumored to be under development. Meanwhile, Ford's North American plants reduced production output.
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Written by: Griffin Davis
