Ford President Kumar Galhotra tells Fox News Autos’ Gary Gastelu that the automaker is in a good position to take advantage of Biden’s plan to electrify the federal vehicle fleet.
Ford beat Wall Street estimates with adjusted fourth-quarter earnings of 34 cents per share on $33.2 billion in revenue versus an expected loss of 7 cents on $32.89 billion, but reported a full-year net loss of $1.3 billion, its first since 2008.
The automaker also announced a near doubling of its investments in electric vehicles to $22 billion through 2025, with an additional $7 billion earmarked for autonomous car development.
“We are accelerating all our plans – breaking constraints, increasing battery capacity, improving costs and getting more electric vehicles into our product cycle plan,” CEO Jim Farley said in a press release on the results. “People are responding to what Ford is doing today, not someday.”
During Ford’s earnings call, Farley said that the amount doesn’t include potential in-house battery production, which would require additional investment.
Ford’s combined $29 billion plan for EVs and AVs compares to General Motors’ latest commitment to invest $27 billion in the technologies through 2025.
GENERAL MOTORS TO GO ALL-ELECTRIC BY 2035
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Ford projected an $8-$9 billion profit for 2021 that includes a $900 million gain on its stake in electric vehicle startup Rivian, in which it made a $500 million in 2019. Rivan, which is scheduled to begin deliveries to customers late this year, was reportedly valued at $27.6 billion following a recent funding round in January.
Ford cautioned that the ongoing semiconductor chip shortage that has affected production could negatively affect its 2021 performance.
Farley used the chip issue as an example of why it will need to be aggressive, but smart developing the battery supply chain for its electric vehicles, and that more details on the electric car plan would be revealed in the spring.
This is a developing story. Check back for updates.
