Ford to invest $11bn in electric vehicles

Posted January 16, 2018

By 2030, Jackson said he expects electric vehicles could account for 15-20 percent of New vehicle sales in the United States.

The company's chairman, Bill Ford, announced the plans at the Detroit auto show. Hackett has been credited with plans for the company to play a wider role in the wider transport "operating system" and step up investment in greener vehicles.

The American auto giant said the increased spending will lead to 16 fully electric and 24 hybrid and plug-in hybrid models.

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Stephanie Brinley, a senior automotive analyst at HIS Markit, said it was a sensible move by Ford.

With the world's top automakers poised to introduce dozens of new battery electric and hybrid gasoline-electric models over the next five years - many of them in China - executives continue to ask: Who will buy all those vehicles?

Speaking at the Detroit motor show, Ford has joined a growing number of vehicle manufacturers who have determined to reduce their carbon footprint.

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The manufacturer plans to release 40 hybrid and fully electric cars by this point.

Volkswagen said in November it would spend $40bn on electric cars, autonomous driving and new mobility services by the end of 2022 - doubling a previous commitment.

This is when Jim Hackett took over the CEO position, to lead the transition of Ford's focus. In addition to this, the company has also pledged to have at least 40 hybrid or fully electric cars in their range. Part of that $11 billion investment will include $700 million to upgrade Ford's Flat Rock, Michigan facility.

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In Detroit on Monday, Fiat Chrysler Automobiles NV Chief Executive Sergio Marchionne said it did not make sense to announce a specific number of new electric vehicles - and he said the company was not under pressure, but working to meet emissions requirements. "There's no doubt that we've entered this period of disruption, you all know that".