Jim Farley, CEO of Ford Motor, on Friday outlined the strategy for the electric vehicle manufacturer and told CNBC that the company intends to compete strongly in the growing market segment.
Farley’s remarks about ‘Squawk on the Street’ come one day after Ford reported better-than-expected fourth-quarter revenue. As part of the announcement, Ford said it would increase its investment in electric vehicles to $ 2025 by 2025, almost double what it had previously promised to spend.
Ford shares were up 2.7% during Friday’s session to about $ 11.70 a share.
“We’re not going to give up on anyone in the future,” Farley told Phil LeBeau, CNBC. “Our electrical strategy is very specific. We are going to invest in segments where we are the dominant player and have scale, such as the F-150, the Transit van, our Mustang.”
While Ford will commit new capital for the coming years, Farley said the company’s EV transition is now delivering results, pointing out that its all-electric Mustang Mach-E crossover has hit the showrooms. He said he sees the Mach-E as a “credible competitor” to Tesla’s compact SUV, known as the Model Y.
Ford’s all-electric Transit van is expected to arrive late this year, Farley noted, and the company’s work on a Michigan plant to build the electric version of its top-selling F-150 continues. “This is the year. We’re not talking about aspirations,” said Farley, who took over as chief executive on Oct. 1.
The loading port for the Ford E-Transit van is located in the grille of the vehicle.
Ford
Wall Street’s focus on electric vehicles is increasing. A number of players in the space, including battery manufacturers and charging station companies, have been announced in recent months. Ford’s competitor General Motors, which is overseas, is also attracting the attention of the street for its aggressive investments in electric vehicles. GM said last week that it plans to end all diesel and petrol-powered cars, trucks and sports utility vehicles by 2035.
Adam Jonas, an analyst at Morgan Stanley, told CNBC before the announcement that under the leadership of Mary Barra, CEO, GM is possibly organizing ‘one of the deepest strategic upheavals, not only in the automotive industry but also in the business world’. . GM shares have risen more than 100% over the past six months, while Ford’s share has risen more than 65% over the same period.
As the production and use of electric vehicles grows, some have expressed concern that there may be a shortage of batteries. Farley acknowledged that the company ‘needs to secure’ as Ford increases electric car production [battery] offer so that we do not get into a situation like in a slide. ‘Ford had to temporarily reduce F-150 production due to a continuing shortage of semiconductors hitting the global automotive industry.
“It’s going to come down to every manufacturer making the commitment,” Farley said. “We make our own decisions on vertical integration. We have $ 22 billion [EV investment] do not even include it. You can expect more news from us about vertical integration. ‘