Jim Hackett, CEO of Ford Motor Company, said on October 3, the company would boost development funds for new electric vehicles (EV). The company will produce more trucks, and SUVs while cutting money spent on cars and internal combustion engines.
Hackett took charge as a President and CEO in May after heading Ford Smart Mobility. The company spent months evaluating Ford’s position as an automaker and transportation company.
Ford is competing with General Motors, which intends to launch at least 20 electric vehicles by 2023.
Hackett said in an interview, “When you’re a long-lived company that has success over multiple decades, the decision to change is not easy, culturally or operationally. We must accept the virtues which brought us success over the past century, are no guarantee of future success.”
Ford will focus on “smart and connected” vehicles which will thrive in a new transportation operating system.
The company will offer internet connectivity on its U.S.-bound models by 2019 and in 90 percent of its vehicles sold worldwide by 2020.
The new Ford vehicle will benefit from more money towards electrification resources. The company will invest 4.45 billion investment which will bring models such as F-150 hybrid, Mustang hybrid, and EV by 2020.
The American carmaker intends to leverage their partnerships for other forms of transportation initiatives. The company aims to use simplified production methods to save money on the cars they manufacture.
Ford is also investing in alternative fuels and charting a strategy for the transportation path it plans to undertake in the approaching decade. Hackett received a memo that his company needs to make a bold move before it falls off the race.