Ford is planning to spend at least $20 billion in a significant reorganization to prepare to electrify their lineup.
The move is part of Ford’s CEO Jim Farley’s initiative to challenge Tesla’s dominance in the EV space.
The effort will require Ford to spend an additional $10 billion to $20 billion over the next five to ten years.
This investment is on top of the $30 billion Ford already committed to EVs through 2025, reports Bloomberg.
Part of this investment will include converting factories worldwide. Not only will Ford retool the factories, they will need to retrain employees to work on EVs and battery cells.
In addition, the reorganization would include a reworked organizational chart. This includes hiring an unspecified number of engineers in EV software, battery chemistry and artificial intelligence among other areas.
Ford is also considering spinning off a small portion of its EV business to jump on available investment capital around EV start-ups.
The spinoff company would focus on lower-volume models while Ford proper focuses on mass-market EVs.
Ford declined to comment on the planned reorganization, the investment or the potential spinoff company.
In response to the leak of the Ford plan, Ford shares climbed as much as 2.7 per cent this afternoon.