Ford Motor Co will more than double spending on electrified vehicles, amplifying its investment in a segment that the auto industry sees growing from what\u2019s now just a fraction of the market.<\/p>\n
The carmaker will shell out $11 billion bringing 40 electrified vehicles to market by 2022, Jim Farley, president of global markets, said during a presentation at the Detroit auto show. That\u2019s up from the $4.5 billion that Ford said in late 2015 it would invest through the end of the decade.<\/p>\n
\u201cThis $11 billion you\u2019re seeing, that means we\u2019re all in now,\u201d executive chairman Bill Ford told reporters in Detroit. \u201cThe only question is will the customers be there with us and we think they will.\u201d<\/p>\n
After electric-vehicle darling Tesla Inc. surpassed Ford in market value last year, the second-largest US automaker replaced then-chief executive officer Mark Fields. His replacement Jim Hackett has vowed to cut costs and drop some car models from the lineup to refocus the company\u2019s future on sport utility vehicles, trucks and electrification.<\/p>\n
With battery costs declining rapidly and regulators around the globe cracking down on the internal combustion engine, automakers have been rushing to step up their game with regards to all-electric models.<\/p>\n
While the segment comprises less that 1% of annual deliveries in the US, global demand is expected to rise as governments phase out gasoline and diesel engines and batteries reach price parity with traditional powertrains.<\/p>\n
Tougher Standards<\/strong><\/p>\n Ford expects fuel economy and pollution standards to get tougher, \u201cand rightfully so,\u201d said Raj Nair, head of Ford\u2019s North American operations.<\/p>\n \u201cWe believe man-made CO2 is contributing to climate change and we\u2019ve got our part to play,\u201d he said.<\/p>\n Of the 40 electrified models planned, 16 will be battery-only vehicles. The company identified just one model by name coming in 2020, called the Mach 1, that will be a performance battery-electric SUV.<\/p>\n \u201cThe real news for me is not just the doubling of investment, it\u2019s where we\u2019re playing,\u201d Farley told reporters. \u201cWe\u2019re starting to telegraph where we\u2019re going to play in electrified business around the world, and that is to electrify iconic nameplates, and it\u2019s going to be higher transaction-price vehicles.\u201d<\/p>\n
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