Ford Motor CEO Jim Farley on Friday promoted the electric vehicle manufacturer’s strategy, telling CNBC that the company intends to compete strongly in the growing market segment.
Farley’s comments about “Squawk on the Street” came a day after Ford reported better-than-expected earnings in the fourth quarter. As part of that announcement, Ford said it would increase its investment in electric vehicles to $ 22 billion by 2025, almost double what it had previously promised to spend.
Ford shares were up 2.7% during Friday’s session at about $ 11.70 a piece.
“We will not give the future to anyone,” Farley told CNBC’s Phil LeBeau. “Our electric strategy is very specific. We will invest in segments where we are the dominant player and we have scale, such as the F-150, the Transit van, our Mustang.”
While Ford is hiring new capital for years to come, Farley said the company’s EV transition is working now and stressed that its all-electric Mustang Mach-E crossover has hit showrooms. He said he considered Mach-E a “credible competitor” to the Tesla compact SUV known as the Model Y.
The all-electric Ford Transit van is expected to arrive later this year, Farley said, and the company’s work at a factory in Michigan to build the electric version of the best-selling F-150 is underway. “This is the year. We’re not talking about aspirations,” said Farley, who took over as chief executive on Oct. 1.
The charging port for the Ford E-Transit is located in the vehicle grille.
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The emphasis on Wall Street on electric vehicles has increased. A number of players in space, including battery manufacturers and charging station companies, have gone public in recent months. Ford’s rival, General Motors, has drawn attention to the street for its aggressive investment in electric vehicles. GM said last week that it plans to end production of all diesel and gasoline cars, trucks and SUVs by 2035.
Just before the announcement, Morgan Stanley analyst Adam Jonas told CNBC that under CEO Mary Barra, GM could orchestrate “one of the most profound strategic changes, not just in the automotive industry, but in business.” GM shares have risen by more than 100% in the last six months, while Ford shares have risen by more than 65% over the same period.
As the production and adoption of electric vehicles increases, some have expressed concern about the lack of batteries. Farley acknowledged that as Ford accelerates the production of electric vehicles, the company “must ensure [battery] supply, so that we do not get into a situation as if we were in chips. “Ford has had to temporarily reduce F-150 production in response to a continuing shortage of semiconductors affecting the global auto industry.
“This will come down to every producer who makes a commitment,” Farley said. “We have our own decisions to make regarding vertical integration. $ 22 billion [EV investment] it doesn’t even include that. You could expect more news from us about that vertical integration. “