Ford Motor Co updates
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In the race to become Detroit’s leading electric vehicle manufacturer, Ford lagged behind rival General Motors in Crosstown.
Under new boss Jim Farley, the leaderboard changes. America’s number two carmaker plans announced this week to invest in three battery factories and an electric truck factory in the US. The planned $ 7 billion spending would be the largest manufacturing investment in Ford’s 118-year history. It comes just months after the company said it plans to spend $ 30 billion on electric vehicles by 2025. The message is clear: Ford will no longer be an EV backlog.
Yet the electric dream is hard to achieve. Although sales of electric vehicles are expected reaches 31m units a year by 2030, according to Deloitte, cars with petrol-powered Ford’s core business are for the time being.
At the moment, the only pure electrical product Ford has on the market is the Mustang Mach-E SUV. It sell only 17,277 units of the model in the first eight months of this year. This represents only 1.4 percent of the total vehicles that the business sold during the period. Tesla, on the other hand, manufactured and delivered nearly half a million vehicles last year.
A big test for Ford comes next spring when it launches the F-150 Lightning — the electrified version of its popular pickup. For traditional car manufacturers, no EV future can be secured without making electric pickups that Americans want to buy. On this front, Ford will have a lot of competition. GM has its GMC Hummer in the wings. Upstarts Rivian (in which Ford has an interest), Lordstown Motors and Tesla are preparing their own entries.
Ford’s shares have more than doubled since Farley took over the helm almost a year ago, achieving GM’s 81% rise in the period. It no longer trades at a discount to GM on a futures income basis. But at just 9 times the expected earnings – compared to Tesla’s 123 times – Ford still remains a cheap way to the booming electric vehicle market.
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