Ford Motor Company (NYSE:F) has plans to completely transform its business model – from a juts selling cars to a company that focuses on all aspects of mobility. A report from Business Insider suggests that the automaker, under the leadership of CEO Mark Fields, is moving into a new era.
“Our business model over many years has been about how many of the vehicles did we sold. Now, we are looking at the ecosystem around that and essentially it’s looking at services and revenue, it’s about looking beyond just the sale of the vehicle,” Fields said in an interview with Business Insider.
Ford is betting big on electric cars and autonomous technology.
Ford is Serious About Electric Cars
The automaker is spending a significant amount of money to grow its electrified products. It plans to invest approximately $4.5 billion by 2020 to offer 13 new electric vehicles. Recently, the company unveiled revealed seven of those vehicles including an F-150 hybrid, a Mustang hybrid, and a fully electric SUV with a range of 300 miles per charge.
“Our view is that the industry offerings, 15 years from now, is that there is going to be more electrified offerings than there are internal combustion engines. So we want to build a reputation around that, we want to build our brand resonance around that,” Fields told the publication. “We want to be a leader in this area.”
However, Fields noted that Ford Motor Company (NYSE:F) isn’t going to completely abandon gas powered vehicles.
Ford Making Push in Self-Driving Technology
Ford is also making a push in self-driving technology. It is working on self-driving cars for commercial use. Scheduled to hit the road by 2021, Ford’s self-driving car will be capable of operating without human intervention in a predefined area.
Ford plans to the self-driving vehicle as part of a ride-sharing fleet. It won’t be selling the car to consumers. The automaker wants to bring the autonomous technology to the masses, while also creating new business opportunities, especially in urban areas.
“Our approach on autonomous vehicles is, we’ve had a history going back to our founder Henry Ford of democratizing technology. Not just making it for people who can afford luxury vehicles. And our approach is how do we take this technology and democratize it so that it becomes available for many, many people,” Fields was quoted as saying by Business Insider.
Ford hast yet to disclose more details about driverless cars for commercial use. Still, it’s not clear whether the company will launch its own network or team up with a ride-sharing or taxi-hailing service.
Moreover, as part of its electrification strategy, Ford Motor Company (NYSE:F) is thinking about building a charging network for electric cars, according to Fields. Last year, the automaker partnered with BMW, Daimler, and Volkswagen to setup a network of about 400 fast charging sites across Europe.
In other news, Ford announced earlier this month that it scrapped plans to build a $1.6 billion plant in Mexico. Instead, the company will invest $700 million to boost production in Michigan.