Ford announced today it is taking significant strides toward an all-electric future in Europe. This will see a new generation of seven all-electric fully-connected vehicles, including three new passenger vehicles and four new commercial vehicles by 2024.
This builds on the recent news that the company has created a new global business unit – Ford Model e – focused on the design, production, and distribution of electric and connected vehicles. Together with Ford Pro, the business unit focused on Ford’s commercial vehicle business, these two business units will define Ford’s future in Europe.
Jim Farley, Ford president and CEO, said: “I am delighted to see the pace of change in Europe – challenging our entire industry to build better, cleaner and more digital vehicles. Ford is all-in and moving fast to meet the demand in Europe and around the globe.
“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.”
With its extended range of electric passenger and commercial vehicle models, Ford expects its annual sales of electric vehicles (EVs) in Europe to exceed 600,000 units in 2026.
The company also reaffirmed its intention to deliver a six percent earnings before interest and taxes (EBIT) margin in Europe in 2023. The acceleration in Europe supports Ford’s goal to sell more than two million electric vehicles globally by 2026 and deliver company adjusted EBIT margin of 10 percent.
Stuart Rowley, Ford of Europe chair, said: “Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe.
“It’s also about the pressing need for greater care of our planet, making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement.”
Together, these efforts will support Ford’s global plans to significantly reduce carbon emissions. The company also announced it is targeting zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.
Starting in 2023, Ford will begin production of an all-new electric passenger vehicle, a medium-sized crossover, built in Cologne with a second electric vehicle added to the Cologne production line-up in 2024. Investment in the new electric passenger vehicles to be built in Cologne is expected to be $2 billion.
This all-electric crossover will break new boundaries for Ford and will be capable of a 311 miles (500km) driving range on a single charge. The vehicle and its name will be revealed later in 2022, with production commencing in 2023.
In addition, Ford’s top-selling passenger vehicle in Europe, the Ford Puma, will be available as an electric version made in Craiova, Romania, starting in 2024.
Ford’s Transit range will include four new electric models – the all-new 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.
To support Ford’s ambitious vehicle electrification plans, Ford, SK On Co., Ltd. and Koç Holding have signed a non-binding Memorandum of Understanding for a new, industry-leading joint venture business in Turkey. Together the three partners plan to create one of the largest electric vehicle battery facilities in the European wider region.
The joint venture would be located near Ankara and will manufacture high Nickel NMC cells for assembly into battery array modules. Production is intended to start as early as mid-decade with an annual capacity likely to be in the range of 30 to 45 Gigawatt hours.
The investment the three partners are planning – including support from the Turkish Government – will directly benefit large and small commercial vehicle operators across Europe, reducing energy and running costs and providing a significant contribution to CO2 reduction.