DETROIT—Ford Motor Co. plans to boost spending on electric vehicle development far beyond previous plans and expects 40% of its global sales to be fully electric by 2030, the Wall Street Journal reports.
The automaker has announced it will spend $30 billion by 2025 to expand its electric lineup, up from the $22 billion it forecast earlier in the year. That figure is a cumulative total that includes spending over the past few years, plus capital earmarked for two future U.S. battery-cell factories.
Ford said it has created an internal business called Ford Pro to serve commercial customers, such as the contractors, utility companies and government agencies that maintain fleets of vehicles. The company expects to increase revenue in that space to $45 billion by 2025, from $27 billion in 2019, by providing those customers with EV chargers and digital tools to help them track their fleets.
Ford unveiled the battery-powered version of its F-150 pickup last week. Dubbed the F-150 Lightning, the first fully electric version of Ford’s top-selling and most-profitable product aims to protect the company’s lead among commercial customers. The company said it has received 70,000 reservations for the Lightning since its introduction, and shares have rallied in the wake of the truck’s debut, which was highlighted by a factory visit from President Biden.
Earlier this year, Ford disclosed plans to phase out conventional vehicles in the European market by 2026 and have all of its passenger cars be battery-electrics by 2030.
EVs comprise only a small part of new car sales in the U.S., but are the fastest-growing category in the automobile industry. The International Energy Agency tallies EVs as making up 3% of the global total of new car sales. Listen to the Convenience Matters Episode No. 268, “Outlook for 2021 Travel Patterns,” for a discussion of EVs in the U.S.
The Fuels Institute has prepared an evaluation of the electric vehicle market from the consumer perspective, including total cost of ownership, recharging infrastructure requirements, anticipated consumer recharging behavior and the relationship of EVs to competing technology in terms of consumer adoption. Visit “Electric Vehicle Adoption: Focus on Charging” to learn more. In addition, the Institute’s Electric Vehicle Council is providing guidance for companies to evaluate how, when and why to enter the market. The Fuels Institute’s “EV Market Regulatory Report” guides retailers looking to offer EV charging in the decision-making and strategic planning process by exploring regulations that could affect installation of electric vehicle service equipment (EVSE). The report also helps policymakers identify and implement appropriate regulatory provisions. Download the EV Market Regulatory Report.