Ford’s move comes amid pressure from regulators for carmakers to lower their emissions, the growing threat of technology companies Apple and Google launching a car, and changing attitudes to vehicle ownership as people in cities use car-sharing services, taxis or public transport instead.

The pressure on carmakers has been increased by the diesel emissions scandal at Volkswagen, which has revealed that its diesel cars were more polluting than previously thought.

The investment in electric vehicles will include hybrid cars that still have a traditional engine, but also pure battery-powered vehicles. Ford will launch a Focus Electric next year that can be charged to 80% in 30 minutes, two hours faster than at present, and run for 100 miles.

Raj Nair, chief technical officer at Ford, said: “The challenge isn’t who provides the most technology in a vehicle but who best organises that technology in a way that most excites and delights people. By observing consumers, we can better understand which features and strengths users truly use and value and create even better experiences for them. This new way of working brings together marketing, research, engineering and design in a new way to create meaningful user experiences, rather than individually developing technologies and features that need to be integrated into a final product.”