Jim Farley CEO of Ford Motor (NASDAQ: FORD) said that he has some good news for Wall Street. The American car manufacturer is planning to provide a decisive plan to transition into electric vehicle manufacturing in the near future.
In an interview with CNBC, Farley said: “The team is doing a better job launching and the financial performance is more reliable and we’re getting serious about restructuring where we need to. Those are all great things. But that’s the beginning. The most important transformation of the company is the modernization and disruption of our company, and they’re different things.”
Furthermore, the American car manufacturer is currently closing a deal with tech giant Google (NASDAQ: GOOGL) over cloud services. The announcement Ford made with Google this week resulted in an 8.6% stock price increase. Consequently, Morgan Stanley — a Wall Street investment bank said that the deal can create a $9 billion annual revenue stream and could generate over $5 billion in profit for Ford.
“2021 is our year of action. We’re executing our plan and we’ll continue to do that so every business in our portfolio has a sustainable future. If not, we will restructure it.” Farley told CNBC in an interview on Wednesday.
Ford signed a deal with Chinese manufacturer Zotye
Additionally, Ford collaborated with Chinese car manufacturer Zotye. The two companies first signed a deal in 2017 and finally finalized it on February 3rd of 2021. Ford and Zotye will launch electric vehicle joint ventures.
“Considering significant changes occurred in recent years in China’s pure electric vehicle industry and relevant policy which makes it impossible to implement the BEV JV and the Smart Mobility JV proposed to be jointly established by Ford and Zotye Motor, Ford China has decided to terminate the relevant JV contracts with Zotye Auto.” said a statement by Ford.
As of this writing, Ford only has one all-electric vehicle that is Mustang Mach-E. The all-electric Mustang will be available late summer of this year. However, the company has announced that it’s planning to electrify more cars including its Transit van.
Ford’s upcoming electric vehicles are the F-150 EV and Bronco SUV. Additionally, the company has pledged $11.5 billion in investment in electrified vehicles through 2022. Farley described it as transitional technologies for the company.
“I don’t have any regrets about that decision but if you’re asking about the future, and being specific about the future, on what our mix is going to be, and how it’s going to change, yes our mix is definitely changing to pure battery-electric. I’m not going to go into details today. Stay tuned.” Farley said.
Since Farley became a CEO four months ago, things are going good for him. Ford stock recovered 60% and Wall Street institutions showcased relief about his management. The company announced the first revenue for the first quarter on Thursday. Ford made $33.2 billion vs. $33.89 billion expected.