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The company plans to add an electric delivery van by the end of the year and the electric F-150 Lightning next spring. This year, Ford began selling an electric S.U.V., the Mustang Mach-E, which has taken market share from Tesla. “This is going to give us a million units of supply just for Ford.” “We have enormous demand for our electric vehicles now, and this is going to help us accelerate,” Ford’s chief executive, Jim Farley, said in an interview. Ford already employs about 13,000 people at two truck and S.U.V. The batteries made there will be used at North American plants that will produce Ford and Lincoln electric vehicles. The two plants in Kentucky will be in Glendale, about 50 miles south of Louisville, and are expected to create 5,000 jobs, at a cost of $5.8 billion. The truck plant is supposed to produce a new battery-powered F-Series pickup truck, following the previously announced F-150 Lightning, but Ford declined to disclose details about it. Ford and SK Innovation will invest $5.6 billion at the site. The Tennessee campus is expected to employ 6,000 people and will house suppliers and a battery recycling operation as well as the truck and battery factories. To be called Blue Oval City, the campus will cover six square miles, substantially larger than the Ford Rouge plant that Henry Ford built in the Detroit area a century ago. Ramsey said.įord’s new truck plant and battery factory in Tennessee will be in Stanton, about 50 miles northeast of Memphis. “There’s grounds to have real concerns about where demand will actually be,” Mr. Charging stations will also have to expand significantly as more electric models hit the road. Ramsey said it was not clear how quickly consumers would embrace electric vehicles, which are still more expensive than conventional cars and trucks even after federal and state incentives. “The fact they are spending billions of dollars means they’re saying: ‘There’s no turning back.
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“All these companies are building battery plants because you have to have your own production if you’re going to make E.V.s in high volume,” said Mike Ramsey, a Gartner analyst. Several other automakers, including Volkswagen, Mercedes-Benz, BMW, Hyundai and Stellantis, which was formed by the merger of Fiat Chrysler and France’s Peugeot, are also investing billions of dollars to produce electric vehicles. Previously, Toyota planned to focus on making hybrid cars and trucks and expressed doubts that fully electric vehicles would take off. Toyota Motor, in a sudden shift in strategy, said this month that it planned to spend billions of dollars over the next decade to build battery factories and hoped to sell two million electric cars a year by the end of the decade. Ford expects electric models to make up 40 percent of its production by 2030.Įven companies that have resisted electric cars have been changing their tune. G.M., which said this year that it aimed to end production of internal-combustion vehicles by 2035, plans to build four battery plants in the United States over the next few years. Other big automakers are also pouring billions into battery and electric car plants. Unionized workers at parts factories typically make less than those assembling cars. The top wage for a Ford assembly line worker represented by the United Auto Workers is $32 an hour under a contract the company and union reached in 2019. Biden and other world leaders will attend in Glasgow in November. It could also become a talking point at a United Nations climate change conference that Mr. President Biden is pressing Congress and other countries to enact policies that would quickly move the world away from fossil fuels, and Ford’s announcement could influence negotiations in Washington over Mr. greenhouse gas emissions, more than the power sector. Transportation, chiefly cars and trucks, is responsible for about 30 percent of U.S. The announcement is the latest multibillion-dollar move by an automaker to quickly move to electric vehicles and phase out gasoline-powered cars and trucks as part of the global effort to combat climate change.
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All told, Ford and a South Korean supplier will spend $11.4 billion on the project. The company described the investment, which it said would enable it to produce more than one million electric vehicles a year in the second half of this decade, as the single largest in its 118-year history. Ford Motor significantly increased its commitment to electric cars and trucks on Monday by announcing that it would spend billions of dollars to build three battery factories and an electric truck plant in the United States, creating 11,000 jobs over the next four years.