Ford will invest $29 billion in electric and autonomous vehicles through 2025, more than double the $11.5 billion it promised through 2022 less than a year ago, the cam manufacturer announced. Ford will invest $7 billion in self-driving tech and $22 billion in EVs, including the $7 billion it has already spent over the last five years.
Some of the new vehicles will be plug-in hybrids (PHEV), but most will be all-electric, including products like the Mustang Mach-E and upcoming electrified versions of the F-150 pickup and E-Transit commercial van.
The transformation of Ford is happening and so is our leadership of the EV revolution and development of autonomous driving. We’re now allocating a combined $29 billion in capital and tremendous talent to these two areas, and bringing customers high-volume, connected electric SUVs, commercial vans and pickup trucks.
Farley, who replaced ex-CEO Jim Hackett in 2020, added that the “more aggressive” plan aims to help Ford become a leader in EVs and autonomous technology.
Ford is joining other automakers like Mercedes-Benz and Volkswagen in committing to an all-electric future in the face of climate change. The increased investment is also likely a response to GM, which recently announced $27 billion in electric and self-driving vehicle investment through 2025. Let's not forget that Apple is allegedly preparing to join the electric car industry in 2025.
Ford has also recently unveiled changes in the technology inside its vehicles. Earlier this week, it entered a partnership with Google, committing to run its cars on Android Auto by 2023.
Shifting focus to EVs won’t be easy for Ford, as its most profitable vehicle by far is the gas-guzzling F-150 pickup truck lineup, sold mostly in the US. Ford made $1.1 billion across the country in Q4 on revenue of $22 billion but endured losses everywhere in the world besides the European market.