Ford Announces It Will Spend More on EVs Than Gas-Powered Cars by 2023
The Ford Motor Company has announced that it will be spending more on electric vehicles (EVs) than on those with internal combustion engines (ICE) in 2023. The news comes as the Biden administration continues negotiations with the nation's automakers to ensure that 40% or more of all vehicles sold will be electric by the end of the decade. Ford says that the company and its customers are excited to see what the future holds as it unveils its first big wave of EVs.
Why This Matters
The Biden Administration has pledged $174 billion to help Americans and automakers make the shift toward electric vehicles, and many automakers have responded with significant investments of their own. US automakers have pledged about $65 billion to the EV race, but many have yet to pledge volumes or proportion of sales.
Ford's vision isn't a pipe dream -- their smaller steps toward EVs have proven to be a huge success. Their Mach-E and the F-150 Lightning models have proven popular with the public, and Ford announced that these vehicles were very effective at attracting new customers. The company's recent announcement should send a message to other, more hesitant automakers that a profitable, sustainable future is possible within this decade.
Big Success, Bright Future
"In 2023 … we'll spend more on EVs than we will on ICE," said Blue Oval's chief operating officer for North America, Lisa Drake. "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."
According to Ford CEO Jim Farley, the F-150 Lightning model, slated to launch next year, has already drawn 120,000 reservations. EVs have now been integrated into Ford's entire growth plan, showing that the company intends to be a significant player in the US electric future.
But Ford isn't the only company leaning hard into the EV sphere. General Motors announced that 2021 would be the first year it spends more on EVs than internal combustion. The company also pledged to increase its investment in EVs by 30% through 2025 to $35 billion and debut a zero-emissions lineup by 2035. The White House hopes that leadership from Ford can help get other Detroit automakers and unions on board with its EV ambitions, but so far, no agreements have been reached.