The chief executive of Ford, Jim Farley, stated that the company has an electric vehicle plan that the other companies won’t be anticipating. He explained that this strategy would help the company return to its former glorious days. These comments emerged after the company recording the best earnings from what they had initially projected. The company announced that it would be adding $22 billion in investment to the electric vehicle line, which it expects to grow two times by the end of 2025. The company’s shares grew by 2.7%, with an approximate value of $11.70 per share.
Farley explained to CNBC’s Phil LeBeau that they intend on taking the entire market and never allow the other entities to thrive in it. The chief executive opened up on the concept of categorizing the whole market into segments and developing specific electric vehicles for all the segments.
Some of the brands expected to perform excellently in this mix include the Ford Mustang, the F-150, and the Transit Van. Farley implied that their new investment would be targeting the redevelopment of the best performing models into electric cars. The ideal example is the electric Mustang Mach-E which the company is already displaying in its exhibition centers. The CEO added that this model is the perfect rival for Tesla’s Model Y.
According to Farley, Ford will be unveiling its electric Transit van this year while resuming the development of the F-150 electric model in the company’s Michigan plant utility. Farley added that they would not be focusing on aspirations but rather the delivery of their objectives.
Nevertheless, this trend is happening amid the transition to electric vehicles activated by the ban on ICE cars. Other bigwigs in the industry like General Motors are far ahead with plans, including battery technology development to increase the mileage range of the cars to meet the initial mileage ranges that the ICE cars were covering before requiring a refill. GM announced plans to halt its production of diesel and petrol vehicles in the next 15 years.
Morgan Stanley’s expert Adam Jonas revealed that GM’s plans are so profound that the automotive industry will be amazed once they materialize. Since electric vehicles’ production and adoption are increasing at a high rate, the companies will have to prove their value to take up the market share. Farley explained that they are not afraid of the seemingly threats from the mega-companies in the industry.