Ford Motor decided to increase its EV spending by up to $50 billion. This is around a 60% increase from its previous electric vehicle spending, which is $30 billion.
The giant automaker said that the latest spending increase on its zero-emission cars will last until 2026. This means that it will still change depending on the revenues Ford will generate from its EV models.
On the other hand, Ford Motor Inc. also announced that it now has separate divisions for its traditional car and EV productions.
Ford's EV Spending Increases
According to Reuters' latest report, the increased EV budget of Ford Motor shows that the electrification strategy of the company's Chief Executive Jim Farley is now becoming more serious.
Read also: Subaru Solterra EV: Reservations are Now Open for First Electric Car from Japanese Company
The automaker's financial change is also expected to enhance the company's EV production, allowing it to produce more than 2 million electric cars in 2026.
The sudden EV spending increase is also possible, thanks to the rising Ford shares. On Wednesday, Mar. 2, the car maker's shares increased by 7.2%.
Because of this, the company's shares are now $17.90. Although Ford Motor is focusing on its EV transition, the automaker's Chief Financial Officer John Fawler said that the car developer will not really benefit from its electric cars until its 2025 production begins.
Ford Model E, Ford Blue
Aside from increasing its EV spending, Ford Motor also confirmed that it now has two separate production divisions for its traditional cars and electric vehicles.
These are specifically the new Ford Blue (gas-based cars) and Ford Model E (electric cars) divisions. This is just one of the major efforts made by the company as it transitions to EV making, as reported by Crunchbase News.
Back in 2019, the automaker invested in Rivian, which is one of the rising electric truck makers in the car industry. It also invested in the electric cell company Solid Power.
In other news, Ford's driverless parking assistant feature is now rumored to be under development. Meanwhile, Ford's North American plants reduced production output.
For more news updates about Ford and other giant automakers, always keep your tabs open here at TechTimes.
Related Article : Ford Mustang Mach-E is now the Top EV Pick of the Year for Consumer Reports-Beats Tesla Model 3
This article is owned by TechTimes
Written by: Griffin Davis
