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Ford (F) Plans to Increase Investment to $11B in EVs by 2022

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Ford Motor Company (F - Free Report) is set to raise its planned investment in electric vehicles (EVs) to $11 billion by 2022, per a Reuters news report. Also, the auto giant has plans of launching 40 hybrid and fully EVs by that time. The latest proposed investment amount is considerably higher than the previously committed $4.5 billion by 2020.

Despite an increase in the share of trucks and sports utility vehicles (SUVs) in total sales and profits, auto companies are aggressively investing in EVs.  In fact, in order to adhere to the stringent regulations, especially in China, automakers are exploring the EV space seriously. A number of global automakers are reorienting their EV strategies.

Ford aims to make its EVs more attractive to buyers compared to what it did in the past. A few electric vehicles will be produced with Ford’s joint venture in China aimed at the Chinese market.

A few other auto makers are also coming up with specific investment plans pertaining to EVs. Volkswagen AG has plans of investing $40 billion in EVs over the next five years.

The company has outperformed the industry it belongs to over the last three months. Its shares have increased 7.8% compared with the industry’s growth of 1.1 %.



Both Ford and Volkswagen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

A few top-ranked automobile stocks in the same space are Allison Transmission Holdings, Inc. (ALSN - Free Report) and Lear Corporation (LEA - Free Report) , each carrying a Zacks Rank #2.  

Allison Transmission has a long-term growth rate of 10%. The company’s shares have gained 31.7% in the past 12 months.

Lear Corporation has a long-term growth rate of 7.1%. The company’s shares have gained 33.3% in the past 12 months.

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