Ford sees profit and growth in the electric vehicle segment. Following up on the release of the all-electric F-150 Lightning (and the commercial version, the F-150 Lightning Pro), Ford has fleshed out its plan to make more EVs, and to make more money from those electric cars and trucks.
During a Capital Markets Day presentation on May 26, Ford outlined the ways that its connected and electric vehicles will allow the automaker to move away from the traditional model it has used for over a century – simply building and selling vehicles – and towards a more connected system.
Part of the plan is to make money through connected services. This system will be called Ford+ and the company characterizes it as "close, enduring customer relationships” that the automaker wants to have with its customers. To foster these relationships, Ford plans to use its cloud-based platform called Blue Oval Intelligence.
“[Ford+] is our biggest opportunity for growth and value creation since Henry Ford started to scale the Model T, and we're grabbing it with both hands,” said Ford CEO Jim Farley in a statement.
This potential revenue is not just going to happen. Ford will still build and sell vehicles well into the future, but more and more of them will be electric. Ford said this week it will spend over $30 billion by 2025 on its electrification plans. That’s an increase of at least $8 billion from its previously announced spending target of $22 billion.
One reason for the price increase will be a new range of EV batteries. This new IonBoost family of batteries will include IonBoost lithium-ion packs for passenger vehicles, an upgraded IonBoost Pro lithium iron phosphate battery for use in Ford’s commercial vehicles, and, some time down the line, “long-range, low-cost solid-state batteries” that Ford is working on with Solid Power.
Some of this battery research will happen at a new site called Ford Ion Park, which Ford said will be a “global center of battery excellence” where more than 150 battery engineers will work to make the packs better and cost less. Better batteries is one reason the automaker is setting an ambitious sales target; Ford wants 40% of the vehicles it sells around the world to be all-electric by 2030.
Ford will also set up a new business called Ford Pro that will be dedicated to the “high productivity requirements of commercial and government customers.” Ford Pro will sell and service these commercial vehicles as well as help fleet managers coordinate charging and maintain their new electric fleets.