Report: Ford is Planning to Invest up to $20 Billion in Electric-Vehicle Project
According to Bloomberg News, Ford Motor is planning an additional $20 billion investment in the development of electric vehicles.
According to the report, which cited people familiar with the plan, the $10 billion to $20 billion investment will be spread out over the next five to ten years and will include converting its current factories around the world to electric-vehicle production.
The No. 2 US automaker had already pledged to spend more than $30 billion on EVs, including battery development, by 2030 under a plan dubbed “Ford+” aimed at making investors value it more like a technology company.
According to the report, the latest push is being led by a former Apple and Tesla executive. Doug Field, a former Apple employee who previously worked at Tesla, joined Ford last year to lead the automaker’s advanced technology and embedded systems efforts.
Major automakers such as General Motors, Ford, and Volvo Cars are making rapid changes in order to gain a piece of the EV pie and compete with electric car challenger Tesla.
According to the report, Ford has considered spinning off a small portion of its electric vehicle business as part of the reorganization in order to capture value in an electric startup environment boosted by investor sentiment.
According to the report, the new plan also includes hiring an unspecified number of engineers to work on concepts such as battery chemistry, artificial intelligence, and EV software, indicating the growing importance of software and digital connectivity in the auto industry.
“We’re carrying out our ambitious Ford+ plan to transform the company and thrive in the new era of connected, electric vehicles,” a spokesman for the company said, adding that the company does not comment on rumors and speculation.
On Tuesday, Ford’s stock rose as much as 2.7 percent.
