Ford Motor Co. (F.N) warned profit will fall this year as Chief Executive Officer Jim Hackett spends heavily to catch up with rivals bringing electrified vehicles to market.

The U.S. automaker forecast adjusted earnings of US$1.45 to US$1.70 a share this year, down from about US$1.78 last year. While Wall Street had been expecting a drop, the low end of the company’s guidance is worse than what analysts were anticipating.

Ford flagged its expectation for weaker earnings two days after Executive Chairman Bill Ford said the company founded by his grandfather is going “all in” on electric cars. The automaker kicked off the Detroit auto show by pledging to invest US$11 billion to bring 40 electrified vehicles to market by 2022. Hackett, 62, last year took over an automaker that lacks a model to compete with cars like General Motors Co.’s Chevrolet Bolt or Tesla Inc.’s Model S.

“We know we must evolve to be even more competitive and narrow our full line of nameplates in all markets, to a more focused lineup that delivers stronger, more profitable growth, with better returns,” Jim Farley, Ford’s president of global markets, said in a statement.