Ford plans $11 billion investment in electric vehicles by 2022

The company also intends to offer at least 40 hybrid and all-electric vehicles in the future.

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Ford

Ford plans to ramp up investment in the electric vehicle industry to $11 billion by 2022.

At the Detroit auto show on Sunday, Ford Chairman Bill Ford said the company also plans to offer at least 40 hybrid and all-electric vehicles to consumers in the same year.

Out of the 40 intended models, 16 will be fully electric vehicles and the rest will be hybrids.

As reported by Reuters, the new figure is far higher than Ford has previously intended.

Ford originally said that roughly $4.5 billion would be spent in the future on developing electric vehicles (EVs) and eco-friendly models which are not wholly reliant on fossil fuels -- and this investment would have included the development of EV architectures.

However, $11 billion will get the company much further. As other automakers including Tesla, Chrysler, Volkswagen, and Nissan spend more and more on EV research, it may be that Ford is making a bid now to become one of the strongest market players in the future.

In October, Ford CEO Jim Hackett outlined the firm's shift in focus to mobility, connectivity, and retooling manufacturing, much of which revolves around smart vehicles.

See also: Qualcomm, with AT&T, Ford, and Nokia, to test connected car tech in San Diego

In order to fund this plan, Ford intends to make $14 billion in cost savings over the next five years and shift investment away from internal combustion engines and certain kinds of vehicles, including sedans.

"Ford will prepare for disruption by becoming fit," the executive said. "There's no doubt that we've entered this period of disruption, you all know that. But we have to design the business to be more fit because it's going to give us time, resources and flexibility to evolve to where we know we have to be."

In December, Ford and Alibaba inked a deal to "reshape" the Chinese automotive industry. Over the next three years, the companies intend to work together to introduce new automotive services in the country, as well as in other markets.

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