Ford Motor Co. plans additional investments of up to $20 billion in the construction of its electric vehicles, Bloomberg News reported Tuesday.
The $10 billion to $20 billion investment will be spread over the next five to 10 years and will include converting current factories around the world to produce electric vehicles, the report said https://bit.ly/ 3L4LFxS, citing people familiar with the schedule.
Under a plan dubbed “Ford+,” designed to make investors value it more like a tech company, the No. 2 US automaker had already pledged to spend more than $30 billion on EVs, including battery development, by 2030.
The latest push is being led by a former Apple Inc and Tesla executive, the report said. Doug Field, an Apple veteran who had worked at Tesla, joined Ford last year to lead the automaker’s efforts in advanced technology and embedded systems.
Major automakers from General Motors Co., Ford and Volvo Cars are making quick changes to take their share of the pie in a competitive EV space and battle electric car challenger Tesla Inc.
The report added that Ford has evaluated the divestiture of a small portion of its EV business as part of the reorganization, to create value in an electric startup environment fueled by investor sentiment.
The new plan also includes hiring an unspecified number of engineers to work on concepts such as battery chemistry, artificial intelligence and EV software, the report said, highlighting the increasing importance of software and digital connectivity in the automotive industry.
“We are executing our ambitious Ford+ plan to transform the company and thrive in the new era of connected, electric vehicles,” the company spokesperson said, adding that they would not comment on rumors and speculation.
Shares of Ford rose a whopping 2.7% on Tuesday.
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