Ford Motor Company is increasing its investment in electric vehicles to $50 billion by the end of the decade. The news of the separation of the EV unit from the engine business was announced by the CEO on Wednesday.
This is the third time in less than a year that Ford has increased its spending on electric vehicles, and the continued financial ramping signals the automaker hopes to catch up to industry leaderTesla.
Through its new EV business, Ford plans to build more than 2 million electric vehicles in the next ten years, with 50% of its total volume being electric by the year 2030. The company doesn't expect to make a profit until the next-gen models begin production in 2025, according to the chief financial officer. The financial results of Ford Model e and Ford Blue will be reported separately by the company.
Ford expects to spend $5 billion on electric vehicles this year, double what it spent last year.
Many analysts think Ford will spin out its EV business, but no one knows when this will happen. That doesn't mean it won't happen in the future.
We need the ICE business to generate cash and the EV business to focus on innovation.
Ford took in 72,000 vehicle orders in February, up from 54,000 a year ago. Ford sales of EV increased 55.3% through February, and it is growing at a faster rate than the overall segment, according to Ford.
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