Ford to invest $ 29 billion in autonomous electric vehicles

Ford to invest $ 29 billion in autonomous electric vehicles

February 5, 2021 0 By autotimesnews

The American automaker Ford plans to double its investments in electric vehicles and increase investments in autonomous vehicles by 2025.

In early 2018, Ford pledged to spend $ 11.5 billion to electrify its lineup by 2022, but the manufacturer has now confirmed that it will increase that investment to $ 22 billion by 2025, and that’s not including the $ 7 billion it has already spent on development of electric cars since 2016. In addition, he will spend $ 7 million on the development of autonomous vehicles.

During its Q4 P&L report, Ford confirmed that most of the models it will produce will be electric vehicles, but the company also has hybrids and plug-in hybrids. The additional electrification investment does not include the potential for integrating battery production, an area Ford is exploring, according to CEO Jim Farley. With regard to the $ 7 billion in autonomous technology investment, Ford said it includes spending on Argo AI and the launch of autonomous commercial services in 2022.

Ford reported a net loss of $ 1.3 billion in 2020, but noted that its fourth-quarter earnings before interest and taxes more than tripled to $ 1.9 billion from the fourth quarter of 2019. Of that amount, $ 1.1 billion was generated in North America, an increase of 53% over the same quarter in 2019. However, Ford lost money in all other overseas business units in the fourth quarter, except in Europe, where it raised $ 414 million.

Ford’s fourth-quarter net loss includes $ 610 million in vehicle recalls due to Takata airbags, $ 1.5 billion in retirement plan revaluations, and $ 2.5 billion in Brazil production shutdowns.