Associated PressMay 27, 2021 12:27:55 IST
Ford predicts that 40% of global sales will come from battery-powered electric vehicles by 2030. This is to add billions of dollars to the amount of money spent on developing battery-powered electric vehicles. In a presentation to investors Wednesday, automakers announced that they would add about $ 8 billion to EV development spending from this year to 2025. When Ford begins developing and manufacturing batteries in a joint venture with SK, total spending will be approximately $ 20 billion. Korean innovation.
Under former CEO Jim Hackett, Ford was criticized by analysts for being too slow in turnaround and future vehicle planning. However, these plans accelerated under CEO Jim Farley, who took over last October.
“Today I’ll show the Ford team, not talk,” Farley said at the beginning of the presentation.
Wall Street liked what it heard, and stocks surged $ 1.09 (8.5%) and closed at $ 13.90 on Wednesday. This is a level not seen in about 5 years.
Ford has announced two new electric vehicle platforms for handling SUVs such as pickup trucks, commercial vehicles, and the Ford Explorer. He said European compact cars will be built on the foundation of Ford’s partner Volkswagen. However, company executives did not provide details about when the new electric vehicle will go on sale.
Many of the 40% sales targets for electric vehicles come from Europe, and the company is committed to converting its entire passenger car lineup to electricity by 2030.
Policy makers in the global automotive industry and government are switching from internal combustion engines to battery power as a way to curb climate change. Some European countries, like California, are planning to phase out oil-powered cars, but President Joe Biden spends billions on charging stations, tax credits and rebates to switch people. I promise that.
Ford Crosstown rival General Motors says it hopes to stop selling combustion vehicles by 2035.
In addition, ExxonMobil shareholders resolved on Wednesday to replace at least two of the company’s 12 directors with directors who appear to be better suited to combat climate change.
Ford’s financial performance has been unacceptable in recent years, according to Farley, but has accelerated turnaround plans and made progress in the last few quarters. The company is currently generating cash flow to help scale its electric and commercial vehicle business, he said. Ford forecasts a pre-tax profit margin of 8% in 2023.
The company also announced that it will create another business called FordPro that focuses on commercial and government fleet buyers. The business is expected to generate $ 45 billion in annual revenue by 2025, from $ 27 billion in 2019.
We also expect that by the end of this year, there will be approximately 1 million vehicles that will be able to obtain software updates via the Internet. Ford says it will have more vehicles with that capability than Tesla by July 2022. This opens up the potential for revenue growth through driving assistance technology and digital subscription services, a $ 20 billion market by 2030.
In Ford’s largest market, the United States, electric vehicles account for only 1.2% of Ford’s sales by April. Ford currently offers only one All-Electric Mustang Mach-E SUV, but plans to install an All-Electric F-150 pickup and a battery-powered transit heavy-duty commercial vehicle on the street by next spring. .. According to the company, 70,000 customers booked the Electric F-150 with a $ 100 deposit a week after it was announced. The Ford F-Series pickups are the best-selling cars in the United States.
Ford plans a new rear-wheel drive, all-wheel drive electric vehicle architecture, offering a new generation of high-selling vehicles, including the Electric Ford Explorer SUV and other large SUVs with two-row and three-row seats. Said.
The company also plans additional cargo vans and pickup trucks from the new architecture and expects one-third of pickup truck sales to be fully electrified by 2030, the company’s product development responsibility. Said Hau Thai-Tang.
Chief Operating Officer Lisa Drake can bring EVs a large amount of purchasing power that small start-ups can’t do by creating an electric version of the best-selling brands Mustang, F-150 and Transit Van. He said he could.
She said 70% of Mustang Mach-E electric SUV sales come from other car brands, proving that EVs can help Ford increase sales.
She said she hopes to reduce battery costs from the current $ 140 per kilowatt hour to less than $ 100 by 2025 and to $ 80 by the end of the last decade.
As an example of a turnaround plan taking hold, Chief Financial Officer John Lawler said international companies, including Europe, China and South America, have lost more than $ 2 billion annually in the last two years, but in the first quarter 5 He said he had generated $ 100 million in profits.
Roller did not promise when Ford would recover the dividend that was interrupted at the start of the coronavirus pandemic. He said the company is focused on investing in growth areas and will regain dividends “as soon as possible”.
An additional $ 8 billion in electric vehicle spending will go to a joint venture with SK Innovation to develop and manufacture batteries announced last week. By the middle of the last decade, the venture plans to build two North American plants to manufacture batteries for approximately 600,000 electric vehicles annually. The two companies said they had signed a memorandum of understanding, but details of the ownership structure and factory location have not yet been clarified.
Ford predicts that 40% of global car sales will come from EVs by 2030-Technology News, Firstpost
Source link Ford predicts that 40% of global car sales will come from EVs by 2030-Technology News, Firstpost