Michael Wayland / CNBC
Ford announced the plans ahead of its first Investor Day under the leadership of CEO Jim Farley, who took over as the automaker on October 1. The highly anticipated event is scheduled to start at 9:30 am EDT and is expected to include detailed presentations from Farley and his management team on the company’s new “Ford +” plan to turn around operations and expand into new emerging markets.
“The presentations will detail where, why and how the business is heading with fully electric vehicles, business solutions and connected services – and how customers will benefit,” the company said in a statement Wednesday.
With the new investment and the new plan, Ford said it expects 40% of its worldwide sales volume to be electric vehicles by 2030. That compares earlier this year to the announcement by General Motors of a goal, which it called an “aspiration”, to sell exclusively electric vehicles by 2035..
Hackett and Fields have been criticized by Wall Street for not detailing their plans on Wall Street after former CEO Alan Mulally, a former Boeing executive, saved the company from bankruptcy during the Great Recession.
Farley’s comprehensive plan is reminiscent of a much-touted restructuring plan and a rallying call under Mulally called “One Ford”.
“This is our biggest opportunity for growth and value creation since Henry Ford began evolving Model T, and we are seizing it with both hands.
Before the coronavirus pandemic, Ford’s adjusted profit margin was 4.1% in 2019, followed by 2.2% in 2020. Due to an imbalance in supply and demand for new vehicles due to ‘a global semiconductor chip shortage, it swelled to 13.3% in the first quarter of this year.
addressable by Ford, ”according to the company.
The automaker will create “Ford Pro”, a new vehicle service and distribution company within the manufacturer “dedicated to commercial and government customers”.
The company plans to overtake Tesla in vehicles capable of performing major remote or over-the-air updates by July 2022 and scale to 33 million OTA-enabled Ford and Lincoln vehicles by 2028.
Such a connected fleet could be competitive with its biggest American rival, GM. The Detroit automaker said it expects more than 7 million of its vehicles worldwide to be capable of such OTA updates by 2023.
Farley said the company plans to electrify its most iconic nameplates, which has led some analysts to question whether the company will offer an electric version of its next Bronco SUV.
Ford said Wednesday it had 70,000 reservations for the F-150 Lightning, up from 44,500 on Friday morning.
Wall Street analysts are also hoping for updates on Ford’s autonomous vehicle plans, including Argo AI, an autonomous vehicle unit jointly owned with Volkswagen.
Argo is testing its autonomous driving technology in six US cities using Ford vehicles. Earlier this month, the company unveiled its own lidar, which many say is the key technology for bringing autonomous vehicles to market.