By 2022, Ford plans to cut spending on traditional engines by a third, or about $500 million, and put that money into electric and hybrid vehicle development, on top of $4.5 billion previously announced. Fred Katayama reports.
Ford is betting on electric. The automaker is planning to cut spending on fuel engines by a third - or $500 million - by 2022, and use that money to develop electric and hybrid vehicles. Ford has already put aside $4.5 billion for that purpose. It promised to deliver 13 new electric or hybrid vehicles within the next five years. Autotrader's Michelle Krebs: (ON THE PHONE) MICHELLE KREBS, DIRECTOR, AUTOMOTIVE RELATIONS, AUTOTRADER (ENGLISH) SAYING: "I think a lot of it has to do with the fact that China is talking about banning gasoline engines at some point. California also has a similar proposal on the table, and so do the cities of London and Paris. I think we're all waking up to the fact that electric is the future." Betting on electric vehicles is part of Ford's wider plan to slash $14 billion in costs over the next five years. Rival General Motors said "it believes in all-electric future," and it's launching 20 new all-electric vehicles by 2023.