Strategy follows restructure to EV and non-EV operations and includes seven new EVs to be built in Europe by 2024, with two electric passenger vehicle models confirmed for manufacture in Cologne.
Ford has announced a range of actions to boost its electric vehicle strategy for Europe to 2026. The latest plan includes new all-electric models and Ford maintains it paves the way for a ‘thriving EV business in Europe, while also making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement’.
The Ford Europe announcement builds on the recent news that Ford has created distinct global business units to focus on its ICE and EV businesses. “This is why we have created Ford Model e – allowing us to move at the speed of a start-up to build electric vehicles that delight and offer connected services unique to Ford and that are built with Ford-grade engineering and safety,” said Jim Farley, Ford president and CEO.
Ford reaffirmed its intention to deliver a 6 percent EBIT margin in Europe by 2023 and a company EBIT margin of 10 percent by 2026.
Under the latest plan, Ford is introducing seven new electric vehicles to be built in Europe by 2024 – three new passenger vehicles and four new commercial vehicles.
Ford is increasing the planned production of electric vehicles at its European EV manufacturing hub – Cologne – to a cumulative 1.2 million units over six years. The investment includes a new battery assembly facility scheduled to start operations in 2024. Ford expects its annual sales of electric vehicles in Europe to exceed 600,000 units in 2026 (and 2 million globally).
On the car side (business unit ‘Ford Model e’) Ford plans two electric vehicles to be built in Cologne – the first a medium sized cross-over, starting in 2023. A second electric vehicle, a sports crossover, will be built in Cologne, starting in 2024.
In addition, the Romanian-made (Craiova plant) Ford Puma will get an EV variant in 2024.
On the commercial vehicle side (‘Ford Pro’) Ford’s Transit range will include four new electric models – the Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.
Two light commercial vehicles – the Transit Courier and Tourneo Courier – will also be produced in Craiova from 2023, with all-electric versions due in 2024. Ford Otosan (a joint venture between Ford Motor Company and Koç Holding) will assume ownership of the Craiova plant and manufacturing business, subject to regulatory approval and consultation.
Additionally, Ford has signed a non-binding MoU with SK On Co., Ltd. and Koç Holding to jointly create one of Europe’s largest commercial vehicle battery production facilities in Turkey. It is planned that the joint venture will be located near Ankara and will manufacture high Nickel NMC cells for assembly into battery array modules. Production is intended to start mid-decade with an annual capacity likely to be in the range of 30 to 45 Gigawatt hours.