Automotive giant Ford Motor Company (NYSE:F) unveiled its plans for the self-driving electric car era but its shares fell as it said the strategy would cause profits to fall next year.
Ford said it would continue to focus on making trucks, vans, commercial and performance vehicles while expanding its utility vehicle business.
The group pledged to transform underperforming areas such as luxury and small vehicles as well as products for emerging markets.
It also vowed to become a leader in self-driving electric cars and “mobility”.
But shares in the company fell US$0.22, or 1.7%, to US$12.16 as it said it expected investment in the business to cause group results to decline in 2017 before improving in 2018.
Ford is investing US$4.5bn in electric vehicle technology and introducing 13 new electrified vehicles – representing 40% of its line-up – by 2020.
Ford is focusing its electric vehicles on its areas of strength – commercial vehicles, trucks, utility and performance vehicles.
It is working on vehicles as well as electrified vehicle fleet management, route planning and telematics.
Ford intends to have a high-volume, fully autonomous SAE-defined level 4-capable vehicle in commercial operation in 2021 in a ride-hailing or ride-sharing service.
The vehicle is being specifically designed for commercial mobility services without a steering wheel or gas and brake pedals.
President and chief executive Mark Fields said: “As we expand to be an auto and a mobility company, we’re not moving from an ‘old’ business to a ‘new’ business. We’re moving to a bigger business.
“The world is moving from simply owning vehicles to owning and sharing them.
“That’s why we are expanding to sell more vehicles and provide transportation services at the same time.”