Ford just got the biggest U.S. investment ‘since the advent of the auto industry’ — here’s what its new joint venture is spending it on (2024)

The U.S. Department of Energy announced that it will be giving Ford and battery producer SK On a $9.2 billion loan to build electric vehicle factories.

The loan more specifically goes to a joint venture between Ford and the South Korean battery giant, which they’re calling Blue SK Oval. The money will be used to build three separate factories, and it will substantially increase the American car manufacturer’s capacity for building vehicles that do not rely on gas.

“Not since the advent of the auto industry 100 years ago have we seen an investment like that,” Gary Silberg, global automotive sector leader at the accounting firm KPMG, told Bloomberg.

Ford just got the biggest U.S. investment ‘since the advent of the auto industry’ — here’s what its new joint venture is spending it on (1)

Ford’s recent dedication to ramping up EV production includes plans to make clean energy vehicles more affordable. That’s an important development as, so far, high costs are a common reason people have not been making the switch to EVs.

“It’s going to help make great EVs available to more customers while powering thousands of good paying jobs and American manufacturing,” Dave Webb, Ford’s treasurer, said in a statement, according to The Verge.Between this joint venture and its own projects, Ford plans to produce two million EVs annually by 2026.

The aid from the DOE couldn’t have come at a better time, as some experts predict that we’ll need 10 million EVs on U.S. roads by 2025 to evade the worst effects of our planet’s overheating.

Currently, dirty energy transportation such as internal-combustion cars and buses are responsible for nearly 30% of polluting gases that are contributing to Earth’s rising temperatures. So efforts to speed up the production of vehicles that do not release these toxic gases are important to slowing our planet’s overheating.

Moving toward a world with fewer gas-reliant vehicles benefits the planet in other ways, too. It means less need for toxic liquids like motor oil, which take years to degrade and can harm wildlife and contaminate waterways. Fewer gas-reliant vehicles can also improve air quality, especially in cities.

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Ford just got the biggest U.S. investment ‘since the advent of the auto industry’ — here’s what its new joint venture is spending it on (2024)

FAQs

Ford just got the biggest U.S. investment ‘since the advent of the auto industry’ — here’s what its new joint venture is spending it on? ›

The loan more specifically goes to a joint venture between Ford and the South Korean battery giant, which they're calling Blue SK Oval. The money will be used to build three separate factories, and it will substantially increase the American car manufacturer's capacity for building vehicles that do not rely on gas.

What is the joint venture between Ford and Toyota? ›

Ford and Toyota have signed a memorandum of understanding (MOU) on the product development collaboration, with the formal agreement expected by next year. Both companies have been working independently on their own future-generation rear-wheel drive hybrid systems.

Did Ford just take out a massive loan? ›

Ford and its South Korean battery manufacturing partner SK On have agreed to a loan of $9.2 billion from the US Department of Energy as part of President Joe Biden's push to bring more electric vehicle production to the United States.

What has the Ford Motor Company announced recently? ›

DEARBORN, Mich., April 04, 2024--Ford Motor Company said today it is retiming the launch of upcoming electric vehicles at its Oakville, Ontario, assembly plant while continuing to build out an advanced industrial system to produce its next-generation electric vehicles, including greenfield construction and conversion ...

How did Ford revolutionize the automobile industry? ›

While he may not have invented the automobile, he did offer a new way of manufacturing a large number of vehicles. This method of production was the moving assembly line. The most common feature of this assembly line was the conveyer belt. The belts were in use within other industries, including slaughterhouses.

Why joint venture instead of merger? ›

Joint ventures are created on a short-term basis and mostly for short projects. On the contrary, mergers and acquisitions are long-term strategies. Whereas mergers and acquisitions have no time limit, a joint venture partnership usually has a defined time horizon.

What is difference between venture and joint venture? ›

Each of the participants in a joint venture is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants' other business interests.

What did Ford spend his money on? ›

Ford and his family spent a good deal of time and money on charitable work. They set up an historical museum in Greenfield Village, Michigan, and most notably set up the Ford Foundation, which provides grants for research, education, and development.

Did Ford pay back the government loans? ›

More than a decade after the last economic crisis, Ford Motor Company is still paying down a fat government loan created by Congress at the start of the Great Recession to aid automakers with factory projects.

Why has Ford been losing money? ›

And its revenue plunged 84% to about $100 million, which Ford attributed mostly to price cuts for EVs across the industry. That resulted in the $1.3 billion loss before interest and taxes (EBIT), and the massive per-vehicle loss in the Model e unit.

Does Ford Motor Company have a future? ›

Ford Motor's earnings over the next few years are expected to increase by 69%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

Do the Fords still own Ford Motor Company? ›

The company is listed on the New York Stock Exchange and is controlled by the Ford family; they have minority ownership but the majority of the voting power.

What was Ford's biggest contribution to the automobile? ›

Ford's greatest contribution to the automobile industry was the development of the moving assembly line. After much experimentation, Ford implemented the system in 1913 at its new plant in Highland Park, MI.

Who is Ford owned by? ›

Ford Motor Company is not owned by another corporation; instead, it is only owned by shareholders. Since the shareholders are collectively the owners of the company, those with more shares technically own more of Ford Motor Co. Ever Wonder: Is the 2020 Ford Mustang all-wheel drive?

What makes Ford different from its competitors? ›

For many years, Ford has remained at the forefront when it comes to producing top-of-the-line automobiles. Their patented designs and engineering innovations have set the bar for the industry, from the legendary F-Series to their self-driving technology.

Are Ford and Toyota connected? ›

LAS VEGAS, Jan. 4, 2017 — Ford Motor Company and Toyota Motor Company are forming SmartDeviceLink Consortium, a nonprofit organization working to manage an open source software platform with the goal of giving consumers more choice in how they connect and control their smartphone apps on the road.

What is a joint venture between two companies? ›

A joint venture is a combination of two or more parties that seek the development of a single enterprise or project for profit, sharing the risks associated with its development. The parties to the joint venture must be at least a combination of two natural persons or entities.

What company did Toyota merge with? ›

1984. Toyota and GM form a joint venture to build vehicles in the U.S., called New United Motor Manufacturing, Inc. (NUMMI) in Freemont, California. Toyota Motor Sales, U.S.A. merges with Toyota Industrial Truck, U.S.A.

What company did Ford merge with? ›

A decade earlier, in 1922, Ford added to its portfolio by acquiring the Lincoln Motor Company (founded in 1917). The acquisition would later produce Ford's luxury Lincolns, including its flagship Continental.

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