Ford is throwing $11 billion at its electric car problem

Ford is throwing $11 billion at its electric car problem

Ford Motor Company said Sunday that it would more than double its investment in the production of electric vehicles, promising to spend $11 billion on the technology by 2022. The auto giant will roll out 16 fully electric cars within five years, the first of which would arrive in 2020.

It was a dramatic escalation in Ford’s crosstown rivalry with General Motors, which has seen its stock prices rise thanks to its commitments to both electrification and autonomy. GM has said it plans to roll out at least 20 new electric cars by 2023, a goal that puts it in a position to bring battery-powered driving to the mainstream.

The takeaway is that momentum is already reaching tipping point and EVs are going to be mature enough for everyday drivers (I mean non-luxury car drivers) from early 2020's on onward. Just like any other economics, as the volumes grow like this, the costs also strat to fall (more than the technological advances have already brought unit costs down, and just like we have seen in the solar narket). It's important countries start to plan for it as grid systems are not modernised overnight - grids can also draw power from connected vehicles but again legacy grids will unlikely be bale to handle this.

See http://bit.ly/2Dl6BAG




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