Ford Motor announced Wednesday that it will increase its spending on electric vehicles by around a third of its previous plans. It expects E.V.s in 40 percent of its production by 2030. This is a significant increase in Ford’s commitment to electrification.
The company plans to spend $30 Billion in five years, up from its previous $22 Billion target. It said that it had received 70,000 reservations for the F-150 Lightning electric pickup truck.
“This is our greatest opportunity for growth, value creation, and growth since Henry Ford began to scale the Model T,” Ford chief executive Jim Farley stated in a statement.
Ford is now a major focus on battery-powered vehicles, despite being late to the party. Ford recently introduced the Mustang Mach-E electric sport utility vehicle. It has been well received by car reviewers and sold well. It appears that has taken market share away from Tesla which, until recently, dominated the electric vehicle market. The F-150 Lightning was introduced by Ford last week. President Biden took the truck to a Michigan company track and praised its acceleration.
This is due to new investments in technology and improved production. Ford announced last week that it would create a joint venture in partnership with SK Innovation to produce battery cells at two American plants for future Ford and Lincoln cars.
Ford stock rose 8.5 percent Wednesday.