This year, the company will pump $5 billion into its electric vehicle (EV) production unit. That is twice the amount it invested in 2021. However, in the short term, Ford is targeting the production of over 2million electric vehicles by 2026.
“Many are embracing electric vehicles as a sustainable alternative to fossil fuel powered vehicles. Despite the strides that the sector has made, there’s still a huge potential waiting to be fulfilled. Ford is awake to this reality hence its decision”, according to a source from tradingplatforms.com.
As part of Ford’s big shift strategy, the automaker has announced a reorganization of its production line. That has seen the separation of Ford’s electric vehicles (EV) division from the parent Internal Combustion Engine one(ICE).
ICE has evolved into Ford Blue that the company has tasked with maintaining cash flows and profitability. And on its part, the EV unit has morphed into Model e, the vehicle that will enhance its competitiveness in that space. Though distinct, the two will collaborate in mutually beneficial areas.
Going by market data, Ford has its work cut out. In 2021 the firm sold 117,500 BEVs and PHEVs. That’s about 13 percent of market leader Tesla.
Besides Tesla, Ford also finds itself jostling for market share with other manufacturers, for example, VW and GM. The duo has a head start over Ford based on their 2021 returns. While VW shipped over 700K EVs, GM did over 500K.
Other key competitors are BYD and Stellantis. Between them, they sold 1million EVs in 2021.
Analysts project that from 2020 to 2026, the global EV market will have increased by more than four-fold. That will see it attain the $1trillion mark from a CAGR of over 23 percent between 2021 and 2026.
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