Ford Motor will considerably increase its scheduled investments in electric vehicles to $11 billion by 2022 and have 40 hybrid and completely electric vehicles in its model lineup, Chairman Bill Ford stated during Detroit auto show.
The investment figure is sharply higher than a previously revealed target of $4.5 billion by 2020, Ford executives stated, and includes the costs of establishing dedicated electric vehicle architectures. Ford’s engineering, research and development costs for 2016, the last complete year available, were $7.3 billion, up from $6.7 billion in 2015.
Ford CEO Jim Hackett informed investors in October the automaker would cut $14 billion in costs over the next 5 years and move capital expense away from sedans and internal combustion engines to develop more trucks and electric and hybrid cars.
Of the 40 electrified vehicles Ford prepares for its international lineup by 2022, 16 will be totally electric and the rest will be plug-in hybrids, executives stated.
“We’re all in on this and we’re taking our traditional vehicles, our most iconic vehicles, and we’re electrifying them,” Ford informed press reporters. “If we wish to succeed with electrification, we have to do it with vehicles that are already popular.”
General Motors, Toyota Motor and Volkswagen AG have already detailed aggressive strategies to expand their electric vehicle offerings and target customers who want luxury, performance and an SUV body style – or all 3 characteristics in the same automobile.
Mainstream automakers are responding in part to pressure from regulators in China, Europe and California to cut carbon emissions from fossil fuels. They also are under pressure from Tesla Inc’s success in producing electric sedans and SUVs that motivate potential owners to line up outside showrooms and flood the business with orders.
GM stated in 2015 it would add 20 new battery electric and fuel cell vehicles to its international lineup by 2023, funded by robust profits from conventional internal combustion engine vehicles in the United States and China.
GM CEO Mary Barra has promised investors the automaker will generate income selling electric cars by 2021.