Ford (Part 1): Accelerating electrification to achieve the "Ford+" business strategy goals
To produce 2 million EVs per year by 2026, building battery plants with SK On and LGES
2023/04/18
- Summary
- New electrification strategy announced to achieve the goals of the Ford+ business strategy
- EV production: Building an EV plant with an annual production capacity of 500,000 units in Tennessee, U.S.
- Joint venture with SK On to build a battery plant for EVs in the U.S. with a total capacity of 129GWh
- Autonomous driving technology: Liquidated Argo AI, a joint venture with VW, and established Latitude AI, a wholly owned subsidiary
- Commercial Vehicle Division Ford Pro: Digital solutions for fleet customers
Summary
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| The new mid-size crossover SUV Explorer EV based on VW's MEB platform (Photo: Ford) |
On July 21, 2022, Ford Motor Company (Ford) announced its EV and battery strategy and raw material procurement plan to produce 2 million electric vehicles (EVs) annually by 2026 as part of its "Ford+" business strategy announced in 2021. The new EV plan calls for investing over USD 50 billion in EVs through 2026, with an EV sales average annual growth rate of over 90%. By 2030, half of Ford’s global production will be EVs, and by 2050, the company will achieve carbon neutrality.
Ford had developed autonomous driving technology through Argo AI, which it co-founded with VW, but liquidated the company's operations in October 2022. The company has announced that it will shift resources from fully automated Level 4 and above technologies to the development of its own Level 2+/Level 3 Advanced Driver Assistance Systems (ADAS). In March 2023, the company established Latitude AI, a wholly owned subsidiary, to focus on developing "technology in which you can take your hands off the steering wheel and your eyes off the road”.
The commercial vehicle business unit "Ford Pro," another pillar of the Ford+ business strategy, aims to become a highly convenient one-stop store for customers, offering a complete set of services related to software, charging, repair, and financing, in addition to commercial vehicle sales. Through this initiative, the company plans to increase sales in its commercial vehicle business to USD 45 billion by 2025. In 2022, the company introduced a comprehensive digital solution to accelerate productivity for fleet customers in Europe and the United States.
This part of the report will focus on Ford's electrification strategy, EV and EV battery production plans, automated driving technology, and digital solutions for its commercial vehicle business. Part 2 will report on the situation and strategies in the U.S., Europe, China, and other regions, company performance, the outlook for 2023, and LMC Automotive's global production forecast.
Related reports:
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Ford F-150 Lightning Teardown: Electric Powertrain (Feb. 2023)
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Ford (Part 2): Enhancement of CVs and EVs in EU, Lincoln models and SUVs in China (Apr. 2022)
Ford (Part 1): Focusing on EVs and Commercial Vehicles under the "Ford+" Business Strategy (Mar. 2022)
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