Ford Announces $11 Billion Investment in EVs

Ford Motor Corporation announced on Monday their latest restructuring plan which involves a substantial investment in EVs. The American automaker is funding $11 billion to open plant facilities and finance the parts for electric vehicles. This news comes at an exciting time, following suit with GM’s pledge to go fully-electric by 2035.

In an interview on “NBC Nightly News,” Ford Executive Chair, Bill Ford, remarked on the idleness that has taken place in the automotive market since Henry Ford transformed the way we drive. While brands have advanced in every way, specifically pertaining to safety, there is nothing that’s quite shaken up the automotive industry like talks of putting an end to gas-combustion vehicles for EVs and autopilot.

Ford states, “There were a lot of evolutions, but no revolutions. Now we’re on the cusp of a revolution. It’s not just the electrification, although that’s a huge piece of it.”

Sure, we’ve emphasized in the past the importance of electric progression. However, this week’s proclamation takes the idea to a serious level. While Japanese automakers sit quiet on investments in EVs, the U.S. is taking a much bolder approach. The countdown to meet such critical timelines is already a pressing issue. According to a recent study, the American people are divided, with only 48% considering the switch to an electric vehicle someday.

These statistics aren’t so promising when you factor in the consumer opinion. The people who are going out and buying a car from the Ford lineup. You can’t help but wonder: Is Ford making the right decision?

Learn more about Ford’s latest investment in EVs and how it will directly impact the American job market.

How Ford’s investment affects the singularity of production

By now, most drivers know the global automotive market is suffering from a semiconductor chip shortage. It’s the reason new car prices have skyrocketed in one year’s time. Recent reports also show the effects are lasting well into 2022 and beyond. As a result, every manufacturer is scrambling to keep up production timelines. Toyota, Volkswagen, GM, and even Ford have had to idle their manufacturing schedules in the last few months.

Ford’s announcement sheds a new light into the future of self-dependency in the automotive construct. By bringing a battery supply chain to a local level, it offers Ford greater security when things go awry. For example, if battery shortages ever one day pigeonhole automakers into the same production limitations they are experiencing now. The chip shortage has exemplified the need to produce in-house. Understanding this, Ford is looking to do more than create more electric vehicles, the $11 billion investment is a stake in battery production as well.

Investment in EVs = More jobs

The groundbreaking investment will also create some 11,000 jobs in Tennessee and Kentucky. These two states were notably affected by the failing coal industry, which is likely why the American automaker chose to increase employment potential in this area. Not to mention, Ford has deep roots seeded in the state of Tennessee. It dates all the way back to the Model T and the various part production that took place there, specifically in Memphis.

Of the 11,000 jobs created, 6,000 will focus directly on the production of electric F-150 pickups and batteries in Stanton, Tennessee. The remaining 5,000 jobs will be offered at the BlueOvalSK Battery Park in Glendale, Kentucky. The employees there will take part in the construction of EV batteries.

Production will begin in 2025

According to Lisa Drake, Ford chief operating officer of North America, production will begin in 2025. In the years ahead, the outlook is optimistic both for the job market and the progression of Ford manufacturing as a whole. We can’t help but applaud the gutsy investment as the start to a transformative decade for Ford Motor Co. And here we thought introducing an electric pickup was enough of an achievement.

The sometime static development of the automotive industry is not something to make light of. The innovations that have taken place decade after decade have given us the safest form of transportation to date. It has driven manufacturers, like Ford, to take the next jump. And pretty soon the consumers will get on board too. It’s time to sit back and let the electric storm take over.