Ford Set To Spend More On EVs Than Gasoline Vehicles

Aug. 07, 2021 6:06 AM ET by Jay Traugott Electric Vehicles / 2 Comments

This hasn't been done in its entire 118-year history.

The Ford Mustang Mach-E and F-150 Lightning are only the beginning of an extensive all-electric model lineup. Although Ford North America has not yet announced a definitive date to end production of combustion-engine models (Ford of Europe and GM have already done so), the automaker is moving at a brisk pace towards full-scale electrification.

The Detroit News reports Ford's chief operating officer for North America, Lisa Drake, stated at an event this week the Blue Oval will increase its EV investments to $30 billion through 2025. But what's really shocking was this statement: "In 2023… we'll spend more on EVs than we will on ICE," Drake confirmed.

"We've been over the moon about the success of Mach-E, and the F-150 Lightning, by bringing in over 70 percent new customers to the Ford brand. What that allows us to do is, now we have an opportunity not only to lead on our ICE business, but also in the EV space with F-150. So our aspirations are high."

Drake didn't state specifically which new EVs the expanded budget is referring to, but a good guess would be a Lincoln-badged model that'll share the Mach-E's platform and possibly another fully electrified SUV from Ford. The carmaker has already confirmed it'll launch a fully electric version of the Transit van in the coming few months. By 2030, Ford expects at least 40 percent of its global lineup will be electrified.

2022 Ford F-150 Lightning Driving Front Angle

Its crosstown rival, General Motors, will spend upwards of $35 billion on EVs through 2025 as well. Both automakers, along with fellow Detroit-based Stellantis, are currently negotiating with the Biden administration to commit to sales of 40 percent to 50 percent being electrified by 2030. Doing so is not exactly easy because it requires extensive planning with suppliers and the United Auto Workers.

One of the UAW's biggest concerns regarding EVs is that fewer factory workers will be needed to build them. Compared to combustion-engine vehicles, EVs generally have fewer parts. That means possible layoffs. But things aren't there just yet. Ford's bold EV commitment may be expensive now, but it'll pay off big time in the years ahead.