Ford is ramping up production of power supply units at its UK plant
Although electric vehicle startups such as NIO (NYSE: NIO) and Mullen Automotive (NASDAQ: MULN) are attracting attention, as well as the 800-pound gorilla Tesla (NASDAQ: TSLA), established automakers from longtime companies such as Ford (NYSE:F) and General Motors (NYSE:GM) are rapidly accelerating the production and commercialization of electric vehicles.
MarketBeat.com - MarketBeatFord announced on Thursday that it will invest $180 million to increase the production of electric units for electric vehicles by 70% at a factory in the United Kingdom. United. It's part of the company's push to bring more electric vehicles to market and ditch its internal combustion engine products.
As GM's electric vehicles are in the spotlight for a poignant reason, an ad for its models including Volt, Blazer, Equinox and Silverado is scheduled on "Everywhere," written by Christine McVie of Fleetwood Mac, died on Wednesday, Ford's announcement is an important signal.
Ford's move is part of the company's European electrification plan, which focuses on zero-emission cars by 2030, followed by all vehicles five years later. Power packs manufactured at the Halewood, England plant will be installed in 70% of Ford electric vehicles sold in Europe by 2026.
The plant currently manufactures transmissions for internal combustion vehicles, but is transitioning to manufacturing parts for electric vehicles. The powertrain is manufactured there as a replacement for conventional engines and transmissions.
Reduce AI spendingThis is a clear sign that the automotive industry is changing at a rapid pace. In October, Ford announced that it had cut capital expenditures for its level 4 artificial intelligence-based driver assistance systems.
In its third-quarter earnings release, the company noted that "large-scale profitable commercialization of Level 4 advanced driver assistance systems will be further advanced than originally anticipated.
However, he added that "growth and customer enthusiasm for the benefits of ADAS L2+ and L3 warrant increasing the company's near-term aspirations and commitment in these areas."
p>Level 2 and 3 driver assist technologies typically include features such as rear crash avoidance and lane centering. Cars on the market today, even those that are a few years old, now use these technologies.
In contrast, Level 4 technologies offer something closer to a fully autonomous driving experience. In this case, the AI calculates when a crash is about to occur and corrects accordingly. It also allows hands-free driving.
Although Ford said its partner in L4 systems, Argo AI, which also had investments from Volkswagen (OTCMKTS: VWAGY), "has been unable to attract new investors". Ford took an impairment charge in the quarter related to the Argo AI shutdown and said it would hire some of Argo AI's engineers.
During the third quarter earnings conference call, Ford Chief Financial Officer John Lawson noted that the company is very optimistic about the potential of driver assistance technologies, although it does not see "a profitable and scalable business in the L4, L5 space for at least five years. We also see that getting there is going to take billions of dollars."
Ford is deploying existing capital and human resources to L2+ and L3 systems. "We believe the addressable market expands our entire product portfolio, from our retail customers to our commercial customers," Lawson said.
Stable sales expectedFord is expected to release its November sales figures on Friday. Industry analyst J.D. Power-LMC Automotive expects industry-wide sales to be flat for the month as rising vehicle prices and rising interest rates dampen demand.
Within the automaker's industry group, Ford's price performance lags European automakers, including
Although electric vehicle startups such as NIO (NYSE: NIO) and Mullen Automotive (NASDAQ: MULN) are attracting attention, as well as the 800-pound gorilla Tesla (NASDAQ: TSLA), established automakers from longtime companies such as Ford (NYSE:F) and General Motors (NYSE:GM) are rapidly accelerating the production and commercialization of electric vehicles.
MarketBeat.com - MarketBeatFord announced on Thursday that it will invest $180 million to increase the production of electric units for electric vehicles by 70% at a factory in the United Kingdom. United. It's part of the company's push to bring more electric vehicles to market and ditch its internal combustion engine products.
As GM's electric vehicles are in the spotlight for a poignant reason, an ad for its models including Volt, Blazer, Equinox and Silverado is scheduled on "Everywhere," written by Christine McVie of Fleetwood Mac, died on Wednesday, Ford's announcement is an important signal.
Ford's move is part of the company's European electrification plan, which focuses on zero-emission cars by 2030, followed by all vehicles five years later. Power packs manufactured at the Halewood, England plant will be installed in 70% of Ford electric vehicles sold in Europe by 2026.
The plant currently manufactures transmissions for internal combustion vehicles, but is transitioning to manufacturing parts for electric vehicles. The powertrain is manufactured there as a replacement for conventional engines and transmissions.
Reduce AI spendingThis is a clear sign that the automotive industry is changing at a rapid pace. In October, Ford announced that it had cut capital expenditures for its level 4 artificial intelligence-based driver assistance systems.
In its third-quarter earnings release, the company noted that "large-scale profitable commercialization of Level 4 advanced driver assistance systems will be further advanced than originally anticipated.
However, he added that "growth and customer enthusiasm for the benefits of ADAS L2+ and L3 warrant increasing the company's near-term aspirations and commitment in these areas."
p>Level 2 and 3 driver assist technologies typically include features such as rear crash avoidance and lane centering. Cars on the market today, even those that are a few years old, now use these technologies.
In contrast, Level 4 technologies offer something closer to a fully autonomous driving experience. In this case, the AI calculates when a crash is about to occur and corrects accordingly. It also allows hands-free driving.
Although Ford said its partner in L4 systems, Argo AI, which also had investments from Volkswagen (OTCMKTS: VWAGY), "has been unable to attract new investors". Ford took an impairment charge in the quarter related to the Argo AI shutdown and said it would hire some of Argo AI's engineers.
During the third quarter earnings conference call, Ford Chief Financial Officer John Lawson noted that the company is very optimistic about the potential of driver assistance technologies, although it does not see "a profitable and scalable business in the L4, L5 space for at least five years. We also see that getting there is going to take billions of dollars."
Ford is deploying existing capital and human resources to L2+ and L3 systems. "We believe the addressable market expands our entire product portfolio, from our retail customers to our commercial customers," Lawson said.
Stable sales expectedFord is expected to release its November sales figures on Friday. Industry analyst J.D. Power-LMC Automotive expects industry-wide sales to be flat for the month as rising vehicle prices and rising interest rates dampen demand.
Within the automaker's industry group, Ford's price performance lags European automakers, including
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