Ford Set to Double Down to $11 Billion on Electric Vehicle Investment

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F stock - Ford Set to Double Down to $11 Billion on Electric Vehicle Investment

Ford Motor Company (NYSE:F) is more than doubling its spending on electric vehicles, committing $11 billion through 2022. F stock is up almost 6% in the new year.

The news came during yesterday’s opening press conference at the annual North American International Auto Show in Detroit. Ford had previously said it would spend $4.5 billion on battery-powered products over the next two years. In October the automaker said it would shift more than $500 million from traditional vehicles — including gasoline-powered cars and trucks — through 2022.

Currently, Ford sells only one fully electric vehicle in the U.S., the compact Focus. The company is developing 16 fully battery electric vehicles by 2022 and 24 hybrid and plug-in vehicles — for a total of 40 electrified vehicles, according to a report in the Detroit Free Press.

According to auto industry data. gasoline or diesel engines powered nearly all of the 90 million vehicles sold around the world last year. Press reports from the auto show noted that other auto makers are not so quick to specify their investments related to electric vehicles. Volkswagen AG (ADR) (OTCMKTS:VLKAY), in the aftermath of a diesel-emissions scandal in the U.S., has committed to spend $40 billion on electric vehicles over the next five years.

“What we learned from this first cycle of electrification is people want really nice products,” Jim Farley, Ford’s head of global markets. We want to make electric vehicles “that are aspirational, that are iconic nameplates, with a customer base,” he said.

InvestorPlace’s James Brumley noted last week that in terms of electric cars, there’s no denying Ford is well behind Tesla Inc (NASDAQ:TSLA), or even General Motors Company (NYSE:GM). Ahead of the Detroit event, contributor Bret Kenwell wrote that “countless automakers and tech companies are all striving toward the same goal: autonomous driving”, asking “where does Ford fit in with all this?”

F stock has gained 23% from a mid-August low. With its 15 cents per share dividend, Ford stock yields investors about 4.54% at current price levels.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/ford-set-to-double-down-to-11-billion-on-electric-vehicle-investment/.

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