The race to deliver electric vehicles (EVs) is revving up this year and Ford (F) is getting fast and furious. We don’t just mean the one-of-a-kind electric Ford Mustang Mach-E GT that’s cutting loose. The company is also unbridling the purse strings. After initially planning to pour US$30 billion into EVs by 2025, Ford’s now expected to up the octane on spending to possibly hit the heady heights of US$50 billion.
A chunk of that spending is set to fuel Ford’s big European ambitions. Last week Ford revealed their plans to release three new electric passenger vehicles and four new electric models of their iconic Transit van in Europe by 2024. Oui oui! Hopes are they can build them without missing pieces. The European EV push is part of Ford’s master plan to split the family into two separate businesses. This will create Ford’s electric business, Ford Model e, operating like a start-up aiming to accelerate electric vehicle production. Ford’s legacy internal combustion engine (ICE) division will be called Ford Blue and plans to be the company’s high-revving ‘profit engine’ while Model e puts the (electric) pedal to the metal. So Ford hasn’t completely de-ICEd, ice’d, baby, as some analysts had expected. But Ford CEO Jim Farley calls it ‘one of the largest transformations in the global automotive business’.
Ford heading to Splitsville is a major advantage and will likely make the spreadsheets easier for analysts and investors to value Ford’s EV business. Investors have shown they are happy to stamp higher valuations to electric vehicle companies than their gas-guzzling counterparts, even those with minimal earnings. There’s hope Ford can deliver on their big public ambitions. *Cough* …still waiting for our CyberTruck, Elon! 🚘
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