Ford expects 40 percent of its global sales to be battery-electric vehicles by 2030 as it adds billions to what it’s spending to develop them, AP reports.
The automaker said in a presentation for investors Wednesday that it will add about US$8 billion to its EV development spending from this year to 2025. That brings the total spend to nearly US$20 billion as Ford begins to develop and build batteries in a joint venture with SK Innovation of South Korea.
Under former CEO Jim Hackett, Ford was criticized by analysts for moving too slowly on its turnaround and future vehicle plans. But those plans have accelerated under CEO Jim Farley, who took over last October.
“Today is show, not tell time, for the Ford team,” Farley said at the start of the presentation.
Wall Street liked what it heard and shares surged US$1.09, or 8.5 percent, to closed Wednesday at US$13.90, a level not seen in about five years.
Ford announced two new electric vehicle platforms to handle pickup trucks, commercial vehicles and SUVs such as the Ford Explorer. It also said smaller vehicles in Europe would be built on underpinnings from Ford partner Volkswagen. But company executives wouldn’t give details about when the new electric vehicles will go on sale.
Much of the 40% electric vehicle sales target will come from Europe, where the company has pledged to convert its entire passenger vehicle lineup to electric power by 2030.
The global auto industry and government policy makers are trying to pivot away from internal combustion to battery power as a way to curb climate change. Some European countries, as well as California, plan to phase out petroleum powered vehicles, while President Joe Biden is promising to spend billions on charging stations as well as tax credits and rebates to get people to switch.
Ford crosstown rival General Motors says it hopes to stop selling combustion vehicles by 2035.