Ford diverts $14 billion for EV, self-driving and connected vehicles

Ford Motor Co. plans to cut costs of US$14 billion over the next five years to be diverted to develop electric vehicles, self-driving vehicles and connected vehicles. Ford CEO James Hackett told investors on Tuesday that the capital investment of vehicles and combustion engines would be stopped and the money would be diverted to develop more modern vehicles.

Hackett said Ford would be open to more partnerships to develop new technologies as it has done with Lyft to develop self-driving technology. Ford will take steps to compete in an increasingly digital and environmentally friendly automotive industry.

Hackett has signed a series of steps, including producing Ford Focus in China and appointing Jason Luo to lead the Ford China business. The company is improving its operations in China and will expand its partnership in electric vehicles for the world's largest auto market.

Hackett also said Ford in 2019 will complete all models of vehicles in the United States with a built-in modem and by 2020 will install mobile internet connections in 90 percent of global vehicles. General Motors Co. as a major competitor has installed a built-in mobile broadband connection in their vehicle since 2015.