Focusing on Eclectic Vehicles under Fords Business Strategy

On May 26, 2021, Ford Motor Company (Ford) announced its new business strategy, "Ford+," which positions electric vehicles (EVs), connected technology, and commercial vehicle business as the pillars of growth. As for EVs, Ford aims to have over 40% of its global sales volume be EVs (electric vehicles) by 2030. For the commercial vehicle business, the company will launch a business division, Ford Pro, to develop a business model that not only sells commercial vehicles but also continues to provide related services such as charging and repair.
 
Ford's sales volume in the U.S. in 2021 was 1,892,000 units, down 7.0% from the previous year. Although the new Bronco and Bronco Sport SUVs and the Mustang Mach-E, Ford's first mass-market EV, contributed to a sales increase, sales were lower than the previous year due to the end of production of most passenger cars and production cuts caused by semiconductor supply shortages. By 2022, Ford expects wholesale volume to improve by 10-15% due to the launch of new EV models and improved semiconductor supply.
 
In its plan to introduce new models in the U.S., with the exception of the Mustang, the company is discontinuing low profitability passenger cars and focus on SUVs and pickup trucks. In pickup trucks, the company will add a mid-size Ranger in 2022 and an off-road type of Bronco Pickup in 2024. In SUVs, the company will discontinue the small EcoSport and the mid-size Edge and launch a Mexican-made mid-size SUV in 2023, an all-new full-size Expedition in 2024, and a new compact Escape in 2025.
 
As for its electrification plans, the company launched its first EV, the Mustang Mach-E SUV, in 2021, to be followed by the E-Transit commercial van and the F-150 Lightning full-size pickup truck in 2022. These reflect Ford's strategy of electrifying its most iconic models. In 2025, the company plans to launch an EV version of the Explorer mid-size SUV, as well as EV versions of three other Lincoln SUV models.
 
Ford's global EV introduction plan will require approximately 240GWh of battery cell production capacity by 2030. Therefore, in addition to developing its own battery production capacity, Ford is also working with a number of battery suppliers. Through a joint venture with battery manufacturer SK Innovation Co., Ltd. (SK Innovation), the company plans to build two plants to produce 129GWh of batteries annually by 2025.