Ford just got serious about electric cars.
The giant automaker said on Thursday that it plans to invest $4.5 billion in building an electric car program.
It also plans to add 13 all-electric vehicles to its lineup by 2020.
In total, Ford CEO Mark Fields says that he wants 40% of the company’s vehicles to have electrified versions by the end of the decade. That’s an aggressive move considering electrified vehicles currently only make up about 13% of the company's fleet.
Among these vehicles will be the company’s new Focus Electric, which is slated to launch next year. The new Focus Electric will have a faster charge time and a range of 100 miles per charge, compared to the ~70-mile range in the 2011 model.
While Ford’s big investment in electric vehicles is undoubtedly a move in the right direction, it’s a little late in the game to really get any sort of edge.
The reality is every major car company is ramping up their investment in electric vehicles and just about every automaker has the same timeline.
General Motors is bringing its all-electric Chevrolet Bolt, which will boast a range of 200 miles per charge and price around $30,000, into production in late 2016. Volvo plans to make an all-electric car by 2019 and aims to offer many of its vehicles in plug-in hybrid versions by 2020.
Volkswagen also plans to roll out more electric options of its current lineup, as well as launch some new all-electric vehicles before the end of the decade.
But the real competition may come from the smallest giant of them all: Tesla Motors.
Elon Musk’s company is planning to roll out its more affordable all-electric Model 3 by 2017. The vehicle is expected to price around $35,000 and boast a range of 250 miles per charge, which far surpasses any of its competitors.
What’s more, it’s possible Tesla could be rolling out a more affordable SUV as well, called the Model Y during the same time frame.
While Tesla is still tiny compared to major automakers, it has lofty ambitions and a great reputation among car-lovers and techies alike.
Tesla will sell some 50,000 to 55,000 cars this year, but Musk says once its new Gigafactory is complete it will help the company hit 500,000 annually by 2020.
Sure, that’s still a small number compared to the some nine million vehicles General Motors sold in 2014. But Musk doesn’t seem fazed.
Just last month Musk said that becoming bigger than a General Motors or a Ford was not unfathomable.
"Possibly, it's not out of the question," Musk said during the Baron Funds investor conference."I think that overtime, if we build great products, and we keep car structure competitive, then I think, who knows?"
