The competition between Ford and General Motors is one of America’s oldest rivalries, and there’s no reason to believe the arrival of mass electrification should change it.
Last week, GM announced its plan to offer mostly electric cars by 2035, and be carbon-neutral by 2040. That plan includes $27 billion in spending over the next five years. Today, Ford pledged to spend $29 billion on the same research.
On a conference call with reporters to announce the plan, Ford Chief Financial Officer John Lawyer said, “If EVs continue to quickly gain favor, especially with commercial customers, we want to be clear that we will not cede ground to anyone.” CEO Jim Farley added, “We are accelerating all our plans.”
What precisely those plans are isn’t clear. Ford currently sells just one electric car – the Mustang Mach-E, which recently won North American Utility Vehicle of the Year. Electric versions of the F-150 pickup and Transit van are also on the way.
The investment, Farley said, will be split between $22 billion on EV development and $7 billion on self-driving technology.
While announcing the long-term investment, Farley also cautioned that a growing global microchip shortage will have a near-term impact on Ford. The company predicts a 10- to 20-percent loss in first-quarter production. It will result in an operating earnings loss of $1 billion to $2.5 billion.
More: Kelley Blue Book’s Best Electric Cars
