Ford Investing Billions In Electrified Vehicle Push


Ford Focus Electric

Ford Focus Electric

...It's The Refreshed Fusion

…It’s The Refreshed Fusion

Ford has never been considered a leader in electric cars like Tesla, Nissan or General Motors (or others).

But now Ford is investing $4.5 billion into electrified vehicles and is hoping to come out ahead.

This comes at time when the company’s stock is at a three-year low. This is due in part to rising labor costs, battery costs and low profit margins. Kevin Layden, Ford’s electric car director explains, “battery costs are not coming down enough to democratize it.”

CEO Mark Fields hopes to add 13 new electrified models by 2020. The lines will consist of hybrid, plug-in hybrid and fully electric options. This would boost Ford’s model lines from 13% to 40% as electric options.

In order to make this happen, Ford is increasing battery research at their Energy Institute on the campus of University of Michigan. Here Ford can experiment with innovations in battery chemistry, with a goal for lighter, more powerful, longer range batteries. Assistant director of operations for the institute, Bruno Vanzieleghem says, “People are still looking for a breakthrough, but we are innovating with what we have now.” Advancements are slow and small, as companies look at using thinner electrodes or alternative chemicals. Greg Less, Senior Lab Manager offers the example of trying “promising” chemical substitutes like lithium-silicon instead of lithium-ion.

Other electric car companies are also putting money and research into batteries to cut costs and increase range. GM’s Bolt is currently pushing 200 miles per charge while Tesla’s Model S is even higher. In comparison, Ford’s Focus is less than 100 miles per charge.

Ford is also using data to assist with growing its presence in the electric car market. The cars collect data when plugged in. Cumulatively, Ford’s electric models, C-Max, Focus, and Fusion save about 1 million gallons of gas a day.

But is Ford’s push too little and too late?

Source: USA Today

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3 Comments on "Ford Investing Billions In Electrified Vehicle Push"

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Not very exciting when they’re still talking about non-plug-in hybrids… That’s a non-starter.

It’s a little too late for us. We are leasing a Ford Focus Electric that we’ve named Ellie Blue. We love the car but range loss has really cut into our ability to get around (44K miles = 35 AER in winter). With no word on battery replacement cost, upgrades, backwards compatibility of future batteries, and no hints of 200+ mile version, we are likely to get a volt next fall to hold us over until the tesla model 3.

It’s a real shame, because it is fun to drive and is well equipped. I’ll be very sad not to purchase it at the end of the lease. But in light of 200+ miles, a ~55 mile range all electric will tank in value.

This article seems fairly loosely written. For example: ” …other electric car companies…”. How many electric car companies are there? Answer: 1. Ford and other legacy car companies are looking to electrify to meet 2020s-era CAFE, CARB and European C02 standards. I’m not splitting hairs to say they are not electric car companies. I’d proffer that hybrids are the best place for major improvements. Ford continues in the well-tread strategy of adding electrification in tiered levels to existing models. From hybrids with relatively small battery packs stuffed in trunks, teamed with conventional ICE engines that do most of the work, to 25 mile plug ins and full BEVs in descending production numbers relative to the cost of building each one. This seems logical if you put yourself into the mind of a gas-car auto executive. No cost to develop a new platform, and minimum losses due to buying batteries. With gas prices low – there is only legislative pressure to put out these cars. The hybrid version can be the least demanding to produce, and contain the least losses. Problem is, saying the costs are too high to “democratize” the process, is a poor excuse not to evolve their business… Read more »