American automaker
FORD MOTOR
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Increases its efforts in the field of electric vehicles by increasing investment in the field alongside an increase in employees. The company announced today that it intends to hire about 6,200 new workers in the Midwest, while converting about 3,000 temporary workers to full-time workers. As a complementary move, the company will invest $ 3.7 billion in its plants in Michigan, Ohio and Missouri.
According to the company’s announcement, the investment is intended to support the new jobs and its strategic plan to reach the production of two million electric vehicles annually by 2026. However, part of the amount is also expected to support the company’s traditional businesses, with about $ 1.4 billion expected to continue. New Mustang and Rangers. A hefty sum of $ 1 billion will be devoted, according to the company’s plan, to improving the work environment over the next five years.
Ford is expected to spend $ 5 billion during the current year (2022) on electric vehicles (EVs), a twofold increase over expenses in the same year (2021). In total, Ford has pledged $ 50 billion in EV spending between 2022 and 2026. Expenditure plans were raised in March. Ford’s old plan called for spending about $ 30 billion between 2020 and 2025.
The $ 2.3 billion spending on electric vehicles the company announced today is part of the $ 50 billion plan. For comparison, Ford’s expenses in 2021 in the electric vehicle sector totaled about $ 6.2 billion, along with engineering, research and development costs that totaled about $ 7.6 billion.
“Ford is America’s number one hourly car hire in America, and this investment only deepens our commitment to building great new vehicles,” Ford Chairman Bill Ford said in a company statement. And better working conditions for our workers in the factories. ”
The announcement today comes after in 2021 the company announced together with its partner in the field of EV SK Innovation batteries, to create about 11,000 new jobs in Tennessee and Kentucky. Alongside the investment plans, the company underwent a reorganization process in which it divided its operations into three new business units: one dedicated to traditional vehicles, one producing electric vehicles and one serving Ford’s commercial customers.
In response to the report, Ford shares are up 2%, with the stock showing a negative return of about 35% since the beginning of the year while the S&P 500 flagship index fell by only 14%. In the background, the rise in the inflation environment and the rise in interest rates that have hit car stocks hard. Due to investors’ fears that high inflation will reduce profit margins while rising rates will moderate demand for new cars.
Against the background of delays in the supply chain, a moderate decline in sales
Along with the announcement, the company reported that its sales in the US decreased by only 4.5% during May, compared to the same period last year. In doing so, the company showed a smaller decrease than in recent months, as it continued to see strong demand for its vehicles due to limited supply News, trucks, SUVs.
Ford and other automakers continue to fight supply chain problems, including a global shortage of semiconductor chips, which has hampered the production of new vehicles around the world for more than a year. Ford’s monthly sales in the U.S. fell more than 10% in April, and more than 20% in February-March.
At Ford, too, persistent disruptions in Ford production have led to limited inventory at its dealers. In response, the company offered incentives to customers who are willing to place orders for their vehicles and wait for now upon delivery. Nearly half of Ford’s retail sales in May came from customer orders issued earlier this year, the company said in a statement.
With chip supply still limited, Ford has opted for the production of its newest models, including the Mustang Mach-E electric crossover. Sales of Ford’s F Series pickups, a major driver of the company’s profits, rose 6.9% in May from last year. The dedication of the Mustang Mach-E was more than double that of the model a year ago. From January to May, Ford sold 763,558 vehicles in the U.S., down 13.3% from the same period in 2021.