The all-electric segment is heating up, with GM announcing it will launch 30 new EV models globally by 2025. Now, Ford is ramping up its own efforts by announcing that it will double its EV research expenditure to $22 billion through 2025.
Ford made the announcement alongside revelation of its Q4 2020 earnings and performance figures, saying that its previous $11.5 billion EV investment through 2022 would be expanded to $22 billion through 2025.
“We are accelerating all our plans – breaking constraints, increasing battery capacity, improving costs and getting more electric vehicles into our product cycle plan,” said Ford CEO Jim Farley.
“People are responding to what Ford is doing today, not someday,” he added.
Ford Mustang Mach E
For the moment, Ford is ramping up production of the 2021 Mustang Mach-E electric crossover, while also prepping launch of the 2022 Ford E-Transit. Meanwhile, the battery-powered Ford F-150 pickup is slated to arrive next year.
Exactly how Ford will leverage the extra investment to accelerate its EV plans remains to be seen, although reports indicate internal changes with regard to product planning and development, including a potential comeback for the Ford Thunderbird. Ford also previously stated that it plans to achieve carbon neutrality by 2050.
Ford’s EV announcements follow similar announcements from GM, including a pledge to eliminate tailpipe emissions across its light-duty lineup by 2035, and carbon neutrality by 2040. More than half of GM’s capital spending and product development will be allocated to EV and autonomous vehicle development, with GM planning to offer an “EV for every customer,” the latter of which is highlighted in GM’s latest “Everybody In” ad campaign.
GM recently saw a surge in stock value following a series of presentations made during the 2021 Consumer Electronics Show, including the launch of BrightDrop, a new business venture geared towards providing electrically powered commercial delivery solutions, as well as a series of futuristic Cadillac concepts.
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Comments
Ford give us this and Chevrolet gives us the Bolt. GM really needs to step up their game.
The Mach-E is a more modern car and it shows. Hopefully the Bolt SUV (EUV?) will match or surpass the Mach-E. Competition is good for everyone.
What platform did Ford create the Mach-e on? All new structure or modified existing structure? What’s new/different/better for batteries over what the Bolt offers? Help me understand what’s so much better on that Mach-e.
Go to Ford Authority and see for yourself. Better yet, visit a Ford dealer and take a test drive. The 2021 Mustang Mach-E is on sale now.
Why would I want to go to a Ford dealership?
Wasn’t the demand so great for the Mach-e that first year models were sold out and dealers were marking them up by thousands of dollars? If so, I’m not going to find one on the lot to test drive.
Some of the things that make the Mach-E more modern are features such as faster charging speeds, Plug and Charge (automates payment processing like Tesla EVs), AWD and an electric-friendly infotainment system. The Mach-E’s premium battery range is also further than the Bolt’s.
I’m not knocking the Bolt. It was created in 2017 and offered a lot of features that rivaled the Tesla Model 3 at the time, but GM thinks it’s due for an upgrade, which is why they are releasing a refreshed Bolt and a Bolt EUV very soon. That will make for a fairer comparison.
I can understand such benefits. But, you’re paying a whole lot more money to get some of those benefits. And in some cases, you’re getting less range. I’d imagine the Bolt and Bolt EUV will close the gap on many of the benefits for a much better price.
Overall the Mach-e and Bolt are quite different and not really comparable.
The Bolt is just a left over of the original GM strategy of trying to build EV products from the bottom up.
Today we know they changed that strategy to top down with people willing to pay more for higher priced EV products that can cover development cost at a faster rate.
The Mach is just a stab at the middle ground as Ford lacks the financial ability to do a major comprehensive program at this time.
Right now GM is letting the Bolt to live as killing a EV now would send a wrong signal though it is out of step with their future plans.
For only has played one card as they have such low capital to invest. They have yet to pay back the bank loans leveraged on their plants nor have they paid the complete $5.9 Billion back to the government. Ah yes they did get a government loan and they are the only Automaker who has not paid it back.
Ford ran into trouble as they spent a lot of money on aluminum F150 development in hopes of a greater return. Well Aluminum prices went up and negated much of the gains they would have made profit wise due to lower profits per unit.
This is why Ford stock has been below $10 and has remained there for a good while.
GM since the bail out has been investing and building the needed things to produce EV product without rushing the product into the market before it was ready or the market was fully ready. For once GM did not let tech get out so far in front that it backfired on them. We all remember the 864 Cadillacs and night vision GM had first but failed due to the lack of computer support that came later.
Now GM is going to keep the ICE around for a while and keep it in place to let the profits from them support things till the EV products are self supporting and established in the market. This is a 20 years deal and we will see more changed in 20 years than we have seen in the last 100 years.
GM is already helping Honda and the so called Mustang EV was also seen testing at the GM proving grounds prior to its release so it appears GM has some kind of connection to it too. More will come on board for either cost savings or the ability to license or purchase technology from GM to build their own EV products. Many will not be able to do it alone.
Ford will fight to remain independent but they will have to partner with another company or companies to get the job done. Only the majority owned stock of the Ford family has prevented Ford from being bought up and broken up.
The Detroit Free Press has been reporting on Fords struggles and few pay attention to it. But the next couple years will be telling and it will be interesting to see what the Ford family does to try to keep the company viable. We have already seen a parade of CEO’s that haver failed and how much longer can this continue?
I hope they can get this right as we are done to two American MFGs and I would hate to see Ford fail or go to a foreign owner.
If Ford does not step up the EV program they will be much like Kodak film.
As for GM just because you don’t see a lot yet does not mean much has not been done. GM is a very closed company to news. The cars you see anymore are only what they want you to see. Prototypes in the wild are not just chance photos much anymore. Even at the test track they know where they can be seen and where they are hidden. Not much gets seen by chance anymore. GM is mostly focus on the Cadillac and Hummer for the early release and the other models will come soon after. When the releases come it will be fast and furious in the number of new models. GM will release in a few months as many models as Tesla has ever offered in their entire time on the market.
Folks we are going to see history like EV or not. I have studied where this is all going and even us gear heads can not stop it. To be honest while I will miss much of what I love about cars with the noise, smell and feel of ICE. EV is not going to be all that bad in most ways. We will lose some cool things but will also pick up things that you just can’t easily do in a ICE vehicle.
As for ICE like how the horse was replaced. We will still have them but more as a hobby and for enjoyment. The classics will always be here and we will take them out and have fun with them much like people ride horses for fun.
Insightful commentary.
^ agreed
Ford has three new EVs : 2021 Mustang Mach-E, 2022 e-Transit and F-150. They had an electric Focus, and several great hybrids. GM only had two hybrids and one EV. Ford is doing better.
Hybrids are a sign of a company with lacking tech and development money.
The truck is a converted F150. The GM is a complete package.
Electric Focus. Where did that get them? Stock is still below $10 and debts are still not paired off.
Don’t be fooled by the merger efforts in the near term. This is a long term game and getting the development done right and releasing product when the market is fully ready to start accepting it is key.
This is a plan not for just next year but one to grow this over 20 years.
Ford is going to need a lot of help. Don’t be surprised by more GM and VW partnerships where they can afford it.
FYI the Mach E has had GM efforts in it already. While they may not speak of it. It was testing in camo at the Warren proving ground. If Ford is doing better than why are they doing work at GM again.
C8.R
Again, thank you for your commentary.