Ford invests $ 11.4 billion in electric transition

This is the largest investment ever made in the hundred and eighteen years of Ford’s existence for new manufacturing plants, noted the American group, which gave a strong impetus to its electric transition. Ford announced, Monday, September 28, the creation of four factories in the United States with its South Korean partner SK Innovation, representing an investment of 11.4 billion dollars (9.74 billion euros) with the key 11 000 jobs by 2025.

Under the pressure of public opinion, customers and investors increasingly sensitive to the environmental issue, many manufacturers have started a turn towards the electrification of vehicles in order to reduce polluting emissions. The American automaker said that two battery factories would be located in Kentucky, in the center of the United States. A third battery plant will be built in western Tennessee, along with a new plant that is expected to start producing F-Series electric vehicles by 2025.

Ford will invest a total of $ 7 billion (5.98 billion euros), which is part of the 30 billion (25.64 billion euros) already announced earlier this year; SK Innovation will pay the rest. This investment supports “The company’s longer-term goal of creating a sustainable American manufacturing ecosystem and accelerating its progress toward carbon neutrality (…) in accordance with the Paris climate agreement ”. Ford has also revised upwards its electric fleet objectives, since it now expects 40% to 50% of its global sales volume to be entirely electric by 2030, against 40%. still estimated in the spring.

“Great electric vehicles Americans will love”

On a patriotic tone, Ford Executive Chairman Bill Ford felt that, combined with “A spirit of innovation”, the group will reconcile what was once considered incompatible: protect the planet, build “Great electric vehicles that Americans will love”, while contributing to the prosperity of the United States.

Like its compatriot General Motors (GM), the manufacturer is also striving to catch up with the Tesla group, a pioneer in the field. Jim Farley, CEO of Ford, recalled the issue: “Providing revolutionary electric vehicles for the greatest number rather than for a few”, allusion to the fact that electric vehicles like Tesla’s remain expensive and therefore inaccessible to middle-class families. Mr. Farley notes at the same time that it is a question of creating “Good jobs that support American families”, thus taking up a theme dear to the President of the United States. Joe Biden has made the shift to a greener automobile a priority.

Ford’s announcement will give Democrats a boost, as they are pushing through Congress this week for their massive infrastructure investment plan of some $ 1 trillion. They want to take measures in favor of the environment and repeat that this could create millions of jobs for the future. In the initial project, the infrastructure plan provided for the construction of a national network of 500,000 charging stations by 2030 and the switch to electricity for 20% of the famous yellow school bus buses.

The World with AFP

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