More than $10 billion investment plan
Several media including BBC reported that Ford accelerates its production of Electric Vehicles (EV) in the US. As a result, the American automotive giant invest $11.4bn in its factory and two battery plants. Furthermore, the company expects that this huge investment will create 11,000 jobs.
In fact, its competitors including General Motors and Stellantis will sell more than half of their cars as EVs. When it comes to battery production, it will work with SK Innovations, a South Korean battery maker.
Who is Ford?
The Ford Motor Company is an American multinational automotive manufacturer. Its head office is in Dearborn, Michigan, the United States. Henry Ford founded the company in 1903.
The US automotive giant sells automobiles and commercial vehicles under the Ford brand, and most luxury brand is the Lincoln. Ford is very famous for “Ford Model T”, which is one of the symbols to express “Mass production, mass consumption”. In addition, its methods to manufacture vehicles in a large scale and to manage a big organization by using elaborately engineered manufacturing sequence are well known, too.
Who is SK innovation?
SK Innovation, a SK Group’s intermediate holding company in field of energy, petrochemical, e-mobility battery, information electronic materials businesses. In fact, the company operates EV battery and E&P along with 6 major subsidiaries. They are SK Energy, SK geo centric, SK Lubricants, SK Incheon Petrochem, SK Trading International and SK IE Technology.
The company has created a value chain in businesses with a vertical integration from E&P to producing petrochemical products. As a result, it has expanded the green portfolio through continues investment in battery and materials sectors. The South Korean company prioritizes its investment in eco-friendly business to bring happiness to the society.
As we see the other article, Ford has already accelerated its electrification in Europe. Of course, the European Commission (EC) imposes the tight regulation against emissions and this is one reason. However, it seems unavoidable for us to take further actions to prevent Climate Crisis.
For example, before 2021 United Nations Climate Change Conference, climate activists came gather in Milan. They advocated that leaders in each country have not taken proper actions to make the earth sustainable. Another example, Green Party, FDP became most popular parties among young voters in German election in 2021. It means that younger generations think of climate crisis as the most important issue for us.
In this sense, it is really important for big companies including Ford to act fast. If they know which direction the industry goes, they should make a decision and act fast. This is only thing they should do now.
On the other hand, small and medium enterprises (SMEs) must follow the movement of these big companies. Compared to big companies, SMEs have fewer resources to transform themselves. Before transforming, they should gain insights about each industry. In this sense, our media, T-ASK, aims to give good insights to them to act fast.