Automaker Ford Plans to Raise its EV Spending by Up to $20B

According to Bloomberg News, Michigan-based vehicle maker Ford is planning to accelerate its deployment of electric vehicles and could increase investments in EVs by up to $20 billion.

The EV effort is being led by a former Apple and Tesla executive, and is calling for Ford to spend an additional $10 billion to $20 billion over the next five to 10 years converting factories worldwide, said the report.

The factories worldwide would be converted to electric-vehicle production from making gasoline-powered cars, according to Bloomberg, which cited people familiar with the plan.

The potential investment is already on top of the $30 billion Ford already plans to invest in electric vehicles through 2025. This includes $7 billion the company already spent from 2016 through February 2021.

It does not count another $11.4 billion it’s investing with South Korea’s SK Innovation to build three battery factories and an EV truck plant in Tennessee and Kentucky.

It was last May that CEO Jim Farley had announced the investments as part of the company’s turnaround plan.

A Ford spokesperson declined to comment directly on the Bloomberg report, citing the company’s policy to not comment on rumors or speculation.

The spokesperson said that the company “carrying out our ambitious Ford+ plan, and continue to carry that out.”

The Bloomberg report also said that Ford has evaluated spinning off a small portion of its EV business as a part of the reorganization in an effort to capture value that investors have been awarding some EV start-ups.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.