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By Ben Klayman

DETROIT, May 26 (Reuters) – Ford Motor Co on Wednesday
outlined plans to boost spending on its electrification efforts
by more than a third and said it aims to have 40% of its global
volume be all electric by 2030, sending shares near a five-year
high.

Under a plan dubbed “Ford+” meant to have investors value it
more like a technology company, the No. 2 U.S. automaker said it
now expects to spend more than $30 billion on EVs, including
battery development, by 2030, up from its prior target of $22
billion. Ford’s shares were up 7.4% in afternoon trading after
earlier rising almost 9%.

“This is our biggest opportunity for growth and value
creation since Henry Ford started to scale the Model T,” Ford
Chief Executive Jim Farley said at the company’s Capital Markets
Day meeting online. “Our ambition is to lead the electric
revolution.”

Ford and other global automakers are racing to shift their
gasoline-powered lineups to all electric power under pressure
from regions like Europe and China to cut vehicle emissions.
U.S. President Joe Biden has called for $174 billion to boost
U.S. EV production, sales and infrastructure.

Ford’s 2030 sales target would translate to more than 1.5
million EVs, based on last year’s sales. By comparison, rival
General Motors Co has targeted annual sales of more than
1 million EVs in the United States and China by 2025. Ford
previously said its European lineup will be all-electric by
2030.

GM aspires to halt U.S. sales of gasoline-powered passenger
vehicles by 2035, and has said it was investing $27 billion in
electric and autonomous vehicles over the next five years.

Some analysts see Ford as trailing rivals in the
electrification race, but Ford officials disagree, pointing to
the rollout of the Mustang Mach-E electric crossover, and the
electric versions of the Transit van and F-150 pickup.

Ford said it expects to deliver an 8% operating margin in
2023.

The Dearborn, Michigan-based company also said it is forming
a new stand-alone unit, called Ford Pro, to focus exclusively on
commercial and government customers.

The company is targeting increasing revenue for the
commercial market for hardware and related services addressable
by Ford Pro to $45 billion by 2025, up from $27 billion in 2019.

Ford said it will also aim to develop EV batteries under the
“IonBoost” brand, from lithium-ion versions to lithium-ion
phosphate for commercial vehicles and eventually low-cost
solid-state batteries in partnership with startup Solid Power,
in which the automaker has invested. Farley expects Ford to cut
battery costs 40% by mid-decade.

Last week, the automaker announced a memorandum of
understanding to form a battery joint venture with South Korea’s
SK Innovation, to make battery cells at two U.S.
plants.

Farley also said Ford expects to have 1 million vehicles
capable of receiving over-the-air software updates on the road
by the end of the year, top the number of vehicles Tesla Inc
serves that way next year and scale that to 33 million
by 2028.

Ford also announced “Blue Oval Intelligence,” an in-vehicle
technology stack that allows fully connected and updated
software, enabling the automaker to interact with customers
after the vehicle sale. The stack also will enable streaming
services from Apple, Amazon, Google
and Baidu.

Ford sees the overall market for connected functions like
driver-assist technologies, new features and upgraded software
content, and EV charging hitting a projected $20 billion by
2030.

Ford confirmed it will develop two dedicated EV platforms,
one for full-size trucks and SUVs, including the Ford Explorer;
the other for cars and smaller SUVs. Reuters reported that on
Tuesday.
(Reporting by Ben Klayman; Editing by Steve Orlofsky)