Ford Motor Company (NYSE:F) is set to invest more in electric vehicles than on internal combustion engines as of 2023, according to a top executive.
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Electrifying popular models
During a Barclays’ bank event, Lisa Drake, chief operating officer for North America, pointed to 2023 as the target to achieve such a feat. As reported by The Detroit News, Ford said it was increasing its investments in electrification to $30 billion through 2025.
Drake said during the gala: “In 2023 ... we’ll spend more on EVs than we will on ICE.”
“We've been over the moon about the success of Mach-E, and the F-150 Lightning, by bringing in over 70% new customers to the Ford brand.”
“What that allows us to do is, now we have an opportunity not only to lead on our ICE business, but also in the EV space with F-150. So our aspirations are high.”
Ford is currently preparing the rollout of the first generation of its electric vehicle models, which started with the Mustang Mach-E SUV by the end of 2020. An electrified version of the Transit is also set up for launch this year, followed in 2022 by the hotly anticipated F-150 pickup truck.
The company’s strategy has been to electrify its most famous models, after launching an electric version of the popular and hugely successful Mach-E, which was met with great sales and rave reviews.
Ford CEO Jim Farley told Wall Street analysts: “The demand for our first round of high-volume EVs clearly has exceeded our most optimistic projections.”
Farley mentioned that the F-150 Lightning has been met with more than 120,000 non-binding reservations, with around 75% of those possible buyers switching from other car brands.
While Drake emphasized the importance of federal policy for Ford’s EV ambitions as consumer adoption of EVs is yet to blossom, the company has set sights on electrifying 40% of its vehicle catalog by 2030.
“We’re going to rely a lot on some of the infrastructure policies and the administration's aspiration to make this a bit more ubiquitous. We can't do it alone.”
“We’re very excited to see some of the bipartisan work that’s happening in Washington right now, because it's going to be necessary to help us.”
Ford is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders’ families.