Ford invests $11.4 billion in electric transition

Giving a strong impetus to the electric transition, the American group said it was Ford’s largest ever investment in new manufacturing facilities in one hundred and eighteen years of existence. Ford announced Monday, September 28, that with its South Korean partner SK Innovation, it will build four factories in the United States by 2025, with an investment of $11.4 billion (9.74 billion euros), creating 11,000 jobs.

Under pressure from the public, customers and investors, who are increasingly sensitive to environmental problems, many manufacturers have turned to electrification of vehicles to reduce polluting emissions. The American automaker said it will set up two battery factories in Kentucky, in the central United States. A third battery plant will be built in West Tennessee, with a new factory expected to begin manufacturing F-Series electric vehicles by 2025.

Ford will invest a total of $7 billion (5.98 billion euros), part of the 30 billion (25.64 billion euro) announced earlier this year; SK Innovation will pay for the rest. This investment supports “The company’s long-term goal of creating a sustainable American manufacturing ecosystem and accelerating its progress towards carbon neutrality (…) In line with the Paris climate agreement”. Ford has also revised up its electrified fleet targets, as it expects 40% to 50% of global sales volume to be all-electric by 2030, compared to the 40% predicted in the spring.

“Great electric vehicles that Americans will love”

In a patriotic tone, Ford Chairman of the Board, Bill Ford, “spirit of innovation”the group will reconcile what was once considered incompatible: protecting the planet, building it “Great electric vehicles that Americans will love”While contributing to the well-being of the United States.

The manufacturer, like its compatriot General Motors (GM), is trying to catch up with the Tesla group, which is a pioneer in its field. Ford’s CEO, Jim Farley, recalled the issue: “Delivering revolutionary electric vehicles for the majority, not the few”, referring to the fact that electric vehicles like Tesla’s continue to be expensive and therefore out of reach of middle-class families. Mr. Farley also points out that this is a matter of creation. “Good works supporting American families”, thus addressing a valuable theme for the President of the United States. Joe Biden has made it a priority to move towards a greener car.

Ford’s announcement will lend support to Democrats who are trying to get their massive $1 trillion infrastructure investment plans through Congress this week. They want to take measures in favor of the environment and reiterate that this can create millions of jobs for the future. The first project provided the infrastructure plan for the construction of a national grid of 500,000 charging stations by 2030 and the electrification of 20% of the famous yellow school buses.