5.2.2021Ford doubles its investment in electrified vehicles
While Ford’s last quarter sales were down $2.3billion, there’s a spark of hope in the automaker’s plans. Ford also announced a doubling of its investment in electrified vehicles to $22 billion through to 2025 and an increase in its total investment in automated driving to $7 billion from $4 billion.
The Mach-E is Ford’s first purpose-built electric car but Ford has already announced two other fully-electric vehicles. We can expect the e-Transit van, which will be launched later this year, and Ford is planning an electric version of F-150 for 2022.
Jim Farley, Ford CEO said: “We are accelerating all our plans – breaking constraints, increasing battery capacity, improving costs, and getting more electric vehicles into our product cycle plan.”
Ford isn’t the only US manufacturer to make a decision to focus on electric, General Motors recently committed to 30 new global electric vehicles by 2025. The story across the rest of the world is similar with manufacturers such as Ferrari, Hyundai, Renault, and Jaguar all switching focus to electrified models (including both hybrids and battery-electric vehicles).
This is a great step for environmentally-friendly driving but while many manufacturers have clear green policies in place, there’s also a cost-saving in switching focus, too. By their nature, electric cars are cheaper to manufacture than internal combustion engine cars. In fact, Ford estimates that an EV will take 30% fewer hours of labour to assemble than a traditionally powered car.
Electric vehicles have fewer moving parts and the propulsion systems are easier to share across different models. This is why many EVs from one manufacturer will be built on the same platform — Hyundai’s E-GMP or VW’s MEB platform, for example. This further improves efficiency within a factory, while reducing costs.