Ford Motor Co. announced that it would significantly increase its investments in electric vehicles by 2022 to over $11 billion and would have 40 hybrid and fully EVs in its lineup. This announcement was made on Sunday by Ford’s chairman Bill Ford during the Detroit auto show.
The dollar amount for investment was much higher than a target announced early of $4.5 billion before 2020, said Ford executives and includes cost for developing dedicated architectures for electric vehicles.
Ford’s expenses in research and development as well as engineering in 2016, the last complete year they are available, were $7.3 billion, which is up from 2015 when they were $6.7 billion.
Ford CEO Jim Hackett in October said the automaker was slashing costs by $14 billion during the upcoming five years and would be shifting its capital investment from internal combustion engines and sedans to developing more hybrid and electric vehicles as well as trucks.
Of the 40 EVs that Ford is planning for its worldwide lineup in 4 years, 24 will be hybrid plug-in and 16 fully electric, said company executives.
Ford told the media at the auto show that the automaker was all in on the shift and is taking its mainstream vehicles, its most iconic vehicles, and electrifying them. He added that if Ford wanted to be successful with its lineup of electric vehicles, it had to do it with those vehicles that already are very popular.
Toyota, Volkswagen and General Motors have already explained in detail their aggressive plans of expanding offering of electric vehicles and target consumers who are looking for performance, luxury and SUV body styles, or all three in the same vehicle.
Mainstream carmakers have been reacting in part because of pressure regulators from California, Europe, and China have made over slashing fossil fuel emission. They have also come under pressure from electric vehicle maker Tesla and the success the company has enjoyed with it electric sedans, SUVs, and now a semi-truck.
In 2017, GM announced it would be adding 20 new fuel cell and battery electric vehicles by 2023 to its worldwide lineup, financed by its robust profits from traditional vehicles with internal combustion engines in China and the U.S.
General Motors CEO Mary Barra promised company investors that it would make money on sales of its electric vehicles by 2021.
In November, VW said it would be spending $40 billion on autonomous driving, electric cars, and mobility services before 2023 begins.