Ford has already announced major investments in electrification, but the American automaker isn’t done with its moves, obviously. There is speculation that the company is working on a major reorganization to prepare for the electric future, and is in fact using Tesla's success as a model to follow.
There’s also official news. Having already committed $30 billion to electrification through 2025, Ford is going to pump another $10 to 20 billion dollars into the effort over the next 5 to 10 years. This new cash will be primarily used to convert factories around the world to produce electric models.
The move is part of a clear goal being formulated by Ford CEO Jim Farley, which is to dent, perhaps even abolish, Tesla's dominance in the field of electric vehicles. And to achieve that, the work done by Elon Musk's company is being used as inspiration.
Investors have embraced Jim Farley's vision; the company’s market value rose briefly above $100 billion in January.
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As mentioned, the new plan may well also include an organizational overhaul at Ford, including the hiring of a significant, though as yet undetermined, number of engineers specializing in a host of new disciplines within the company, for example battery chemistry, artificial intelligence and electric vehicle software.
According to a source who did not wish to be identified, Ford is even considering launching a sub-division, which may help draw in investors who lately have been favouring start-up companies. Ford has not commented on the matter, but it’s pretty clear there is a lot of discussion behind the scenes.
“We are executing our Ford Plus plan to transform the company and thrive in this new era of electric and connected vehicles. We would not comment on speculation,” explained Mark Truby, director of communications for the company, explained in an emailed statement reported on by Bloomberg.
Ford's plans for electric vehicles have accelerated since Jim Farley became top boss 16 months ago. The company has tripled production of its Mach-E Mustang and nearly doubled production of the F-150 Lightning, which will launch this spring. Ford also spent $11.4 billion with South Korea's SK Innovation to build three battery plants and an electric truck plant in Tennessee and Kentucky.