Ford is investing heavily in its electric vehicle production plans. On March 20, the company announced it would invest $850 million in its FlatRock, Michigan plant, turning it into Ford's second electric vehicle factory.
(The FlatRock plant is about to receive a large amount of funding, making it Ford's second electric vehicle plant)
Ford's other electric vehicle plant is located in Cuautitlán, Mexico, where an electric SUV will be available in 2020.
The FlatRock plant currently employs 3,400 people and produces the Mustang sports car and the tenth-generation Lincoln Continental. This investment in the plant primarily includes adding a production line for all-electric vehicles and producing the hybrid Mustang model.
Back in January 2018, Ford stated that it would increase its investment in electric vehicles to $11 billion by 2022, and this $850 million investment is part of that plan, which will be carried out over the next four years (i.e., completed before 2023).
In a media interview, Ford's global operations president, Joe Hinrichs, said, "When we look at our electrification progress, we realize that we are not doing enough and need to invest more resources in this area and build a new factory to produce electric vehicles for us."
He also stated that Ford's electric vehicles will begin production at the FlatRock plant in 2023. From now until then, the plant will require large-scale operations and tools and configurations. The reason they are announcing this now is because "we have started negotiations with suppliers, we have informed suppliers of our plans, and they will begin their plans."
According to reports, Ford's first all-electric vehicle to be produced at its FlatRock plant will be a Mustang-inspired crossover, codenamed "Model E," which will compete with Tesla's recently launched Model Y. The Model Y is priced between $39,000 and $60,000. There is currently no information regarding the price of Ford's electric vehicle, but reports suggest it will be performance-oriented with a range of over 300 miles on a single charge.
In addition to the aforementioned all-electric vehicles, Ford will also launch electrified versions of the F-150 pickup truck and Mustang. Earlier this year, Jim Farley, Ford's global marketing president, stated, "Ford plans to electrify the F-150 series, launching electric and plug-in hybrid versions."
The hybrid version of the Mustang is currently in the testing phase. It will be powered by a V8 engine with electric drive for the front wheels. These three new models will be at the forefront of Ford's electrification lineup and are all scheduled for official release in 2020.
To facilitate this electrification shift, the FlatRock factory plans to reduce one shift in April, with approximately 560 workers being reassigned to other locations and over 400 employees being designated as temporary workers. However, over the next four years, approximately 900 workers will be hired to produce electric and autonomous vehicles.
Ford will also invest $50 million to build an autonomous driving research and development center near Detroit, where employees will install autonomous driving technology and unique interiors on cars produced at the FlatRock plant.
Ford has stated that it will dedicate all its efforts to electric vehicles, not only establishing a new internal team called the "Edison Team" to oversee electric vehicle projects, but also shifting one-third of its internal combustion engine investments to electric vehicles. Now it seems that Ford is indeed relentlessly accelerating its electrification efforts.
Over the next five years, Ford will launch 13 new electrified models in the global market. Foreign media outlets point out that Ford's increased investment in electrification is partly due to regulatory requirements in China, Europe, and California demanding reductions in carbon dioxide emissions; it is also driven by electric vehicle manufacturers such as Tesla.
Ford's sales declined by 9.1% year-on-year in 2018, and its net profit plummeted by 52%. Reports indicate that Ford plans to lay off 70,000 salaried employees globally in the second quarter of this year as a self-rescue measure. Against the backdrop of continued shrinking global auto demand and rising sales of electric vehicles, Ford's massive investment in electrification is clearly one of its self-preservation strategies.
On January 15, Ford also signed a global alliance agreement with Volkswagen. In addition to planning to begin developing commercial vans and mid-size pickup trucks for the global market by 2022, the two companies will also jointly develop electric and autonomous vehicles. Last year, Ford also signed a memorandum of understanding with Mahindra to jointly develop SUVs and electric vehicles.
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