The world of automotive manufacturing continues to face disruptions around every turn. Digital technologies are revolutionizing the production process and an entirely new class of vehicles, electric vehicles (EV’s), are upending the industry. However, EV’s are now becoming a primary focus for major automotive manufacturers where they once were a novelty being produced only by the automotive startups such as Tesla.
Ford Motor Company, one of the most well-known automotive manufacturers in the world is ready to double its investment in the production of electric vehicles. The company stated they plan to spend $11 billion on the technology by 2022. Their goal is to release 16 fully electric cars within five years. Consumers can expect Ford’s first EV to hit the market in 2020.
“This $11 billion you’re seeing, that means we’re all in now,” Executive Chairman Bill Ford told reporters in Detroit. http://bit.ly/2r6yPKJ
Ford suppliers and manufacturers must prepare for these future developments. Businesses that were once supplying engine parts will find themselves in a challenging situation when Ford begins rolling out electric vehicles that don’t make use of conventional combustion engines. These manufacturers must ensure they’re ready for the transforming automotive industry. Granted, this transition is happening gradually and the combustion engine isn’t going anywhere for quite some time. Still, now is the time to prepare in order to remain competitive well into the future.
GM, Toyota, the VW Group, Daimler and now Ford are all launching electric vehicle initiatives. This isn’t just to keep up with electric car leader, Tesla, but it’s a bid to meet consumer demand. As consumers continue to embrace the idea of electric vehicles, automotive manufacturers will continue to expand their selection.
Manufacturers will need to prepare for this impressive shift taking place all over the world. Businesses that take the next step forward and offer the services electric vehicles require will be in a position to become industry leaders. As consumers demand changes, manufacturers must remain flexible in order to continue thriving as the world continues to transform.
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Ford will boost electric vehicle spending to $11B and offer 40 electrified models by 2022