Ford Motor CEO Jim Farley announced the carmaker’s electric vehicle strategy Friday, telling CNBC that the company intends to compete aggressively in the growing market segment.
Farley comments on Squawk on the Street This came a day after Ford announced better-than-expected fourth-quarter earnings. As part of this announcement, Ford said it was increasing its investment in electric vehicles to $ 22 billion through 2025, double what it had previously pledged to spend.
Ford shares rose 2.7% during Friday’s session, at nearly $ 11.70 a share.
“We will not compromise on the future to anyone,” Farley told CNBC. Phil Lipo. “Our electrical strategy is very specific. We will invest in sectors where we are the dominant player and have a wide range, such as the F-150, Transit van and Mustang.”
As Ford commits to new capital for the coming years, Farley said the company’s electric vehicle transition is now achieving results and cited the fact that the Mustang Mac-e crossover is fully electric Hit the galleries. He said he considers Mach-E a “reliable competitor” TeslaKnown as a compact SUV Form Y.
Ford’s all-electric transit truck is It is expected to arrive late this yearFarley, and company, noted Work in a Michigan plant Construction of the best-selling electric version of the F-150 is still ongoing. “This year, we’re not talking aspirations,” Farley said. Took over as CEO October 1.
The charging port of the Ford E-Transit truck is located in the vehicle grille.
Wall Street is increasingly focusing on electric cars. There are a number of players in space of them Battery makers And the Charging station companies, Has been released to the public in recent months. Ford Crostown competitor General Motors It also caught Street’s attention for its strong investment in electric cars. GM said last week that Plan to finish production For all cars, trucks and SUVs diesel and petrol powered by 2035.
Even before this announcement, Morgan Stanley Analyst Adam Jonas told CNBC that it is under the leadership of CEO Mary Barra, General Motors You may be coordinated “One of the deepest strategic shifts, not only in the auto industry, but in business.” General Motors shares have risen more than 100% in the past six months, while Ford’s shares are up more than 65% in the same range.
As the production and adoption of electric cars grows, some have raised concerns It could be a battery shortage. Farley admitted that as Ford ramps up the manufacture of electric cars, the company must “secure them.” [battery] Offer so we don’t get into a mode like chips. ” Temporarily reducing production of the F-150 In response to the ongoing semiconductor shortage hitting the global auto industry.
“This will go back to every manufacturer that commits,” Farley said. “We have our own decisions about vertical integration. We have $ 22 billion [EV investment] Not even that. You can expect more news from us about this vertical integration. “