Ford Motor Co. has announced plans to invest more than $1 billion in its car and truck maker Chrystal Automotive, which will add to its existing portfolio of automotive businesses.
The investment comes amid mounting competition from rival automakers like General Motors Co., Fiat Chrysler Automobiles NV and Volkswagen AG, which have all ramped up production to keep pace with growing demand.
Chrystals investment is part of a broader plan to add new auto business models and products to its portfolio, including electric cars.
Chrysler, a major U.S. automaker, has also announced plans for a $1-billion buyout of Fiat Chrysler’s automotive operations, which include Chrysler’s popular SUV, the Ram 1500.
The $1,600 buyout is expected to close by the end of 2020.
Ford Motor said the $1bn investment would enable the company to better compete with rivals such as General Motors and Chrysler.
Ford is also looking to expand into the emerging auto business of autonomous vehicles, with the introduction of an autonomous vehicle called the Ford Fusion in 2020.