Auto maker Ford and South Korean battery supplier SK Innovation to invest $ 11.4 billion in joint venture to produce batteries. 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 Kentucky factories to supply batteries for Ford's new electric vehicles. The Tennessee plant will also produce batteries, and also collect electric pickups of the F-series. Plants will be put into operation in 2025. The enterprises will allow the production of up to a million electric vehicles per year.
Ford invests $ 7 billion in co-production as part of its long-term program. The company will invest $ 30 billion in the production of electric vehicles by 2025. According to forecasts, by 2030, electric vehicles will be up to 40% from the total sales of the company. According to the leadership, the company will finance the program from the profit, not new loans.
Until recently, the auto company was skeptical about large investments in the production of batteries.. Everything changed a year ago, when Jim Farley was appointed head of Ford. According to Farley, new factories will help the company increase margins and cope with supply chain disruptions.
Auto companies around the world restrict production due to supply disruptions and shortages of semiconductors. According to the calculations of the consulting firm AlixPartners, chip shortage will cost the auto industry $ 210 billion in 2021.
Ford reported sales of $ 26.8 billion in the second quarter of 2021. 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. Now, high consumer demand and rising car prices are helping to partially restore revenue to auto companies..
Ford revenue in the second quarter, billion dollars