Ford Says a Big Surprise is Coming in 2020

Electric vehicles are expected to dominate the roads one day and auto makers are in a frenzy to keep up with the demand.

According to BloombergNEF, it sees “sales of electric vehicles (EVs) increasing from a record 1.1 million worldwide in 2017, to 11 million in 2025 and then surging to 30 million in 2030 as they become cheaper to make than internal combustion engine (ICE) cars.”

Ford’s CEO announced recently that the company has a ‘big surprise’ coming next year with electric vehicles. The company has said it plans to put $11 billion into electric vehicles by the year 2022 and wants to produce 40 hybrid and fully electric cars.

Chief Jim Hackett said to CNBC’s Phil LeBeau at the Detroit Auto Show, “We talked about a huge investment in electric vehicles. We have 16 models that are in design and development. We have a pretty big surprise coming next year.”

“Some of the pain in the margins additionally [is] because the vehicles are old. We have on average the oldest fleet in the industry and we are going to have average the newest fleet. 75 percent of the portfolio is being turned over,” said Hackett.

“China’s optimism is still high with us,” he added. “The brand is one of the highest-ranking brands in the country. Even at the highest levels of the government they see it as a family-owned business that middle America loves. The Chinese want to relate to American businesses like that.”

Ford also just revealed the Mustang GT Shelby 500 at the Detroit auto show, the fastest street legal Mustang in history according to the company. The car has 700-horsepower and goes from 0 to 60 miles per hour in the “mid-3 second” range.

IHS Markit analyst Stephanie Brinley remarked, “The GT500 is essentially a street-to-track car for the Mustang, not entirely unlike the Challenger and Charger Hellcats,” she said. “So it is low volume, but big excitement. … It is clearly important to get people excited about your brand and about your vehicles in general, whether they buy a utility vehicle, a sedan, or a sports car. It does help to make a statement, as long as it fits with the brand.”

Disclaimer: We have no position in Ford Motor Company (NYSE: F) and have not been compensated for this article.