Ford is expanding production of all-electric vehicles after deciding that rapid growth in market meant it needed to accelerate its plans.

It is investing almost £700million in new production capacity after the carmaker’s Joe Hinrichs said it had “taken a fresh look” at the growth in electric vehicles.

Ford also said it would start production of autonomous vehicles in about two years. The company has been in talks with Germany’s Volkswagen about an alliance to invest and built electric and autonomous vehicles. Mr Hinrichs said the talks had been positive, but there was nothing to announce.