During the last three years, Ford motors have increased their focus towards electrification. Ford may have been a little late to dedicate liege resources to the production of electric vehicles, but it is growing exponentially. While Ford’s traditionally gas models have been loved by the public for over a century, electrification has changed the power dynamics in the market. An increasing number of customers are leaning towards eclectic vehicles.
Ford Motor has significantly increased its commitment electric vehicles and trucks by announcing on Monday that it would invest billions of dollars in three battery factories and an electrical truck plant in the United States. This will create 11,000 new jobs over the next four-year period.
According to Ford, the investment would allow it to produce more electric vehicles per year than 1 million in the second half this decade. This is the largest single-year investment in its 118-year history. Ford and a South Korean supplier will invest $11.4 billion in the project.
This announcement marks the latest multibillion dollar move by an automaker in a global effort to reduce greenhouse gas emissions and move quickly to electric vehicles. The majority of U.S. greenhouse gases are caused by transportation. This is more than the power sector.
President Biden is urging Congress and other countries to quickly shift the world away fossil fuels . Ford’s announcement could have an impact on negotiations in Washington regarding Mr. Biden’s climate and energy agenda. This announcement could be a major topic at the United Nations climate change conference in Glasgow, which Mr. Biden will be attending with other world leaders in November.
Ford’s executive chairman William C. Ford Jr. stated in an interview that “I believe the industry is on track to electrification.” “And those who aren’t will be left behind.”
Automakers have been criticized by environmentalists for failing to respond adequately to climate change, and for selling large, gas-guzzling trucks as well as sport utility vehicles. The industry has been forced to make a difficult switch to electric vehicles over the past months due to growing environmental concerns and the threat of Tesla , the dominant manufacturer of electric cars.
Ford and General Motors, two of the world’s most established automakers, are trying to catch up with Tesla. This year, Tesla is expected to sell over 800,000. With a market capitalization close to $800 billion, Tesla is the most valuable global automaker. Ford’s market capitalization is $56 billion.