A MAJOR car brand has bought an EV start-up in the hope of revitalizing its flagging switch to electric motors.
Ford is buying Auto Motive Power (AMP), an electric charging startup that makes battery management software.
The car manufacturer wants to revise its charging technology and reduce the costs of its electric vehicles.
The California-based company AMP, which also produces charging technology for drones and “Hyperloop” transport systems, will be integrated into the company.
A Ford representative said Business Insider The company will “incorporate and vertically integrate” AMP’s “talented engineers and technologies” into its electric vehicle plans.
“Ford is focused on accelerating electric vehicle adoption and improving the charging experience for as many customers as possible,” the representative said.
“This move is about accelerating those efforts – with excellence.”
Ford had previously said it would postpone its £9.6bn electric vehicle spending due to lower-than-expected demand.
It also said they would pause work on several major projects, including a new battery factory in Kentucky.
Still, executives acknowledged that the company is still committed to battery-powered vehicles.
Last month, Chief Executive Bill Ford warned that drivers were unwilling to pay a steep premium for electric vehicles.
In an interview with The New York TimesHe said that prices would have to come down before the automotive industry could fully adopt electric vehicles.
But Ford isn’t the only automaker to abandon its ambitious goals in the face of slowing demand.
GM said it would abandon its goals of building 100,000 electric vehicles in the second half of 2023.
Meanwhile, Mercedes-Benz CFO Harald Wilhelm told analysts that the EV sector is a “pretty brutal area” and that the current market is unsustainable for many automakers.
Still, Elon Musk’s Tesla continues to defy predictions that increasing competition will hurt its position as the largest electric vehicle maker in the Western world.
Subaru recently became the latest automaker to join the EV club.
The Japanese company has announced plans to introduce Tesla’s North American charging standard for its electric vehicles from 2025.
Elsewhere, the boss of a large car dealership, which oversees 190 workshops, revealed why drivers avoid electric vehicles.
Average prices for used electric cars are falling by almost a quarter, according to new data.
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And another prominent car dealer has warned that there is an oversupply of electric vehicles in the UK, causing a major imbalance.
Vertu Motors, which has 189 sites across the country, has warned that the supply of electric vehicles now exceeds demand in the UK.