Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Ford boosts EV spending, outlines 2030 sales targets, shares near 5-year high

Stock Markets May 26, 2021 04:27PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The Ford logo is pictured at the 2019 Frankfurt Motor Show (IAA) in Frankfurt, Germany. REUTERS/Wolfgang Rattay/File Photo 2/2

By Ben Klayman

DETROIT (Reuters) - Ford Motor (NYSE:F) Co on Wednesday outlined plans to boost spending on its electrification efforts by more than a third and said it aims to have 40% of its global volume be all electric by 2030, sending shares near a five-year high.

Under a plan dubbed "Ford+" meant to have investors value it more like a technology company, the No. 2 U.S. automaker said it now expects to spend more than $30 billion on EVs, including battery development, by 2030, up from its prior target of $22 billion. Ford's shares were up 7.4% in afternoon trading after earlier rising almost 9%.

"This is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T," Ford Chief Executive Jim Farley said at the company's Capital Markets Day meeting online. "Our ambition is to lead the electric revolution."

Ford and other global automakers are racing to shift their gasoline-powered lineups to all electric power under pressure from regions like Europe and China to cut vehicle emissions. U.S. President Joe Biden has called for $174 billion to boost U.S. EV production, sales and infrastructure.

Ford's 2030 sales target would translate to more than 1.5 million EVs, based on last year's sales. By comparison, rival General Motors Co (NYSE:GM) has targeted annual sales of more than 1 million EVs in the United States and China by 2025. Ford previously said its European lineup will be all-electric by 2030.

GM aspires to halt U.S. sales of gasoline-powered passenger vehicles by 2035, and has said it was investing $27 billion in electric and autonomous vehicles over the next five years.

Some analysts see Ford as trailing rivals in the electrification race, but Ford officials disagree, pointing to the rollout of the Mustang Mach-E electric crossover, and the electric versions of the Transit van and F-150 pickup.

Ford said it expects to deliver an 8% operating margin in 2023.

The Dearborn, Michigan-based company also said it is forming a new stand-alone unit, called Ford Pro, to focus exclusively on commercial and government customers.

The company is targeting increasing revenue for the commercial market for hardware and related services addressable by Ford Pro to $45 billion by 2025, up from $27 billion in 2019.

Ford said it will also aim to develop EV batteries under the "IonBoost" brand, from lithium-ion versions to lithium-ion phosphate for commercial vehicles and eventually low-cost solid-state batteries in partnership with startup Solid Power, in which the automaker has invested. Farley expects Ford to cut battery costs 40% by mid-decade.

Last week, the automaker announced a memorandum of understanding to form a battery joint venture with South Korea's SK Innovation, to make battery cells at two U.S. plants.

Farley also said Ford expects to have 1 million vehicles capable of receiving over-the-air software updates on the road by the end of the year, top the number of vehicles Tesla (NASDAQ:TSLA) Inc serves that way next year and scale that to 33 million by 2028.

Ford also announced "Blue Oval Intelligence," an in-vehicle technology stack that allows fully connected and updated software, enabling the automaker to interact with customers after the vehicle sale. The stack also will enable streaming services from Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL) and Baidu (NASDAQ:BIDU).

Ford sees the overall market for connected functions like driver-assist technologies, new features and upgraded software content, and EV charging hitting a projected $20 billion by 2030.

Ford confirmed it will develop two dedicated EV platforms, one for full-size trucks and SUVs, including the Ford Explorer; the other for cars and smaller SUVs. Reuters reported that on Tuesday.

Ford boosts EV spending, outlines 2030 sales targets, shares near 5-year high
 

Related Articles

Wall Street opens lower on mounting growth worries
Wall Street opens lower on mounting growth worries By Reuters - Jun 30, 2022 3

(Reuters) - Wall Street's main indexes opened lower on Thursday, the last day of a dismal first-half of the year, on worries that central banks determined to tame inflation will...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email