Automaker Ford and South Korean battery supplier SK Innovation to invest $11.4 billion in battery joint venture. During the day, Ford shares rose by 2,8%, and on the postmarket they added more 4,7%.
Together the companies will build three new factories. Two factories in Kentucky will supply batteries for new Ford electric vehicles. The Tennessee plant will also produce batteries., and also collect F-series electric pickups. The factories will be launched in 2025. Enterprises will allow the production of up to a million electric vehicles per year.
Ford to invest $7 billion in co-production as part of its long-term program. By 2025, the company will invest $ 30 billion in the production of electric vehicles. According to forecasts, by 2030, electric vehicles will be up to 40% from the total sales of the company. According to management, the company will fund the program with profits, not new loans.
Until recently, auto companies were skeptical about major investments in battery production.. Everything changed a year ago, when Jim Farley was named CEO of Ford. According to Farley, new plants will help the company increase margins and deal with disruptions in the supply chain.
Due to supply disruptions and shortages of semiconductors, auto companies around the world are limiting production. According to consulting firm AlixPartners, chip shortages to cost auto industry $210bn in 2021.
Ford posted $26.8 billion in Q2 2021 sales. It's on 38% more compared to the same period last year, when consumer demand fell hard. But relative to the second quarter of 2019, sales fell by 31%. Including due to lack of components. High consumer demand and rising car prices are now helping auto companies partially restore revenue..
Ford revenue in the second quarter, billion dollars
| 2019 | 38,9 |
| 2020 | 19,4 |
| 2021 | 26,8 |
38,9
