Ford is making plans to increase production and shipping of electric vehicles (EV), announcing that the company will invest an additional $10 to $20 billion into the effort over the next 5 to 10 years. The investment dollars will be spent on retooling factories for the production of electric vehicles and for hiring engineers to work on concepts such as battery chemistry, artificial intelligence, and EV software.
This spending plan is in addition to the $30 billion that Ford had already pledged to its Electric Vehicle program, known as “Ford+,” in May 2021. The company expects that electric vehicles will comprise 40% of its global volume of sales by 2030.
CEO Jim Farley said that this is the company’s “biggest opportunity for growth and value creation since Henry Ford started to scale the Model T.”
Ford anticipates that yearly revenue will hit $45 billion by 2025, which is a significant increase from $27 billion in 2019.
The auto manufacturer plans to surpass Tesla in producing vehicles that are capable of significant remote updates by July 2022 and expects to produce an estimated 33 million over-the-air-enabled Ford and Lincoln vehicles by 2028.
Farley has stated that the company plans to turn its most iconic names into electric vehicles, with an electric version of the Bronco coming very soon. Ford has already converted the Ford Mustang into an EV as well as the F-150.
“In the BEV (Battery Electric Vehicle) era, Ford will not cede truck leadership to anyone,” said Lisa Drake, Ford’s chief operating officer. “Our plan is to win in the electric revolution.”
According to the company’s report, the restructuring is a work in progress, and some elements may be changed or dropped. As of Tuesday afternoon, shares of Ford were up by 2.7%, which currently brings it to $20.38 per share.