Electric Vehicle

Ford to invest $11 billion on EVs by 2022

According to some media reports, Bill Ford, the executive chairman of Ford Motors at the Detroit auto show revealed plans of the company to significantly increase the production electric vehicles. He said the company will invest $11 billion by 2022 on electric vehicles and will have as many as 40 hybrid and fully electric vehicles in its offerings by then. The company had earlier announced target if $4.5 billion by 2020. Out of 40 vehicles, 16 vehicles will be electric vehicles and the rest will be hybrid vehicles.

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The automaker plans to shift its shift capital investment away from sedans and internal combustion engines to develop more trucks and electric and hybrid cars. In the process, the company would slash $14 billion in costs over the next five years.

The counties around the world are framing policies in favor of electric cars and are moving towards the goal of decarbonization. This has forced the automakers to change their strategy and induce more electric vehicle in their offerings. Several automakers like General Motors, Toyota and Volkswagen AG, Daimler are working on the plans to develop and manufacture more electric vehicles. Therefore the announcement by Ford to increase its investments in electric vehicles is not surprising.

Recently, the company has formed a team named “Team Edison” to accelerate global development of electric vehicles. Based in the Detroit area the group plans to work with regional Ford vehicle electrification teams in China and Europe. It will identify and develop electric-vehicle partnerships with other companies, including suppliers.

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