Ford is planning a major overhaul of its electric vehicle offensive with a massive budget of up to $20 billion. Bloomberg reports that Ford will employ specific strategies that Tesla has used to earn its notoriety as an electric vehicle leader, including a roadmap for vehicle launches and manufacturing planning and a significant budget.
Ford has made drastic changes to its electric vehicle leadership, including the acquisition of Doug Field, a former Tesla engineer who left the company for Apple and then left Apple for Ford in 2021. , the total electrification reorganization plan has a budget of between $10 billion and $20 billion, giving Ford leeway in how its capabilities evolve.
One of the most crucial parts of Ford’s new plan is to transform factories responsible for manufacturing gasoline-powered vehicles into electric vehicle factories. A significant portion of the investment will be earmarked for this task and could take up to ten years, sources familiar with the matter told the publication.
“We are executing our Ford Plus plan to transform the business and thrive in this new era of electric and connected vehicles. We will not comment on speculation,” Ford communications chief Mark Truby said.
Recently, Ford pledged to reach an ambitious goal of 600,000 deliveries in 22 months. CEO Jim Farley thinks Ford can be “one of the first to evolve” in terms of traditional automakers. Ford has been largely the historic company most committed to adopting electric vehicles, releasing several highly competitive vehicles in its early years. F-150 Lightning deliveries are expected to begin in the spring, and the Mustang Mach-E was the second best-selling crossover SUV in 2021, behind the Tesla Model Y.
Led by Farley, who recently said Ford wouldn’t give up on its Rivian investment, the playbook is relatively similar to the one Tesla used to launch its improbably successful company into the world’s most valuable automaker. The Elon Musk-led company used a product roadmap in its early days, mostly outlined in its Master plan, to channel its early projects into fundraising campaigns primarily for cheaper mass vehicles in the future. It’s unclear whether Ford will use exactly this strategy, but the main goal is to turn its existing factories into production sites for electric vehicles. Ford has reached a market capitalization of $100 billion. The company’s valuation has increased 269% since Farley took office.
Ford Hits $100 Billion Market Cap Thanks to the Jim Farley Effect
It’s a task that will avoid turning today’s manufacturing facilities into tomorrow’s stranded assets. Updating factories will save Ford time, money and labor, as many of its employees will likely be trained to handle electric powertrains. Volkswagen has taken the same steps at some of its plants in recent years and provided on-the-job training to employees who decided to stay at its plants.
The additional $10 billion to $20 billion investment will complement the already $30 billion investment that Farley detailed earlier for Ford. This investment will help Ford accelerate its commitment to electric vehicles through 2024 and will quadruple initial production guidelines for the F-150 Lightning and triple Mustang Mach-E manufacturing efforts.
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