As part of its ongoing efforts to transition from a traditional carmaker to a sustainable mobility provider, Ford Motor Co. has announced it will only sell passenger electric vehicles (EVs) in Europe and the UK by 2030. To back up this commitment, the company also announced a new $1 billion investment to convert its production plant in Cologne, Germany, to an EV manufacturing center.
As a first step toward its 2030 goal, Ford said its passenger vehicle lineup in Europe will be 100% zero-emissions capable, all-electric, or plug-in hybrid by 2024. The company also said two-thirds of its commercial vehicle (CV) sales in the region—a category in which it leads all OEMs—will be EVs or plug-in hybrid vehicles (PHEVs).
The news comes after Ford reported a return to profitability in Europe in Q4 2020 and announced it was investing at least $22 billion globally in electrification through 2025, nearly twice the company’s previously announced EV investment plans.
“We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020,” said Stuart Rowley, President, Ford of Europe. “Now we are charging into an all-electric future in Europe with expressive new vehicles and a world-class connected customer experience. We expect to continue our strong momentum this year in Europe and remain on track to deliver our goal of a 6% EBIT margin as part of Ford’s plan to turnaround our global automotive operations.”
In 2020, Ford achieved its sixth successive year as the leading commercial-vehicle sales brand in Europe. The company has said that growth in its commercial-vehicle business is key to its European profitability, and it plans to support it with new products and services. It has been working with a network of commercial-vehicle converter partners, with a strategic alliance with Volkswagen and its Ford Otosan joint venture providing cost-effective vehicle development and sourcing.
Driving further growth in the commercial-vehicle business will be an ecosystem built around connected services co-developed with customers and designed to enhance the customer experience and help their businesses to thrive. These include, for example, connected uptime and productivity services such as FordPass Pro for fleets of up to five vehicles, and the launch of Ford Fleet Management, created by the company and ALD Automotive last year to maximize productivity for fleet customers seeking bespoke services to keep their fleets on the road.
With Google, the company recently announced the establishment of a new collaborative group, Team Upshift, to drive disruptive, data-driven opportunities. This first-of-its-kind partnership in combination with its in-house capabilities will be the basis of transformed ownership experiences and services for both the company’s commercial and passenger vehicle customers.
The company’s commitment of $1 billion to modernize its vehicle assembly facility in Cologne is a significant one, considering the plant is one of its largest in Europe and home to the company’s European operations. The Cologne plant will be renamed the Ford Cologne Electrification Center and will be the first facility of its kind for Ford in Europe.
The company also confirmed that its first European-built, volume, all-electric passenger vehicle for European customers will be produced at the facility from 2023, with the potential for a second all-electric vehicle built there under consideration.
“Our announcement today to transform our Cologne facility, the home of our operations in Germany for 90 years, is one of the most significant Ford has made in over a generation,” Rowley said. “It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth.”
“The decision to make the production and development site in Cologne the e-mobility center for Ford in Europe is an important signal to the entire workforce,” said Martin Hennig, Chairman of the General Works Council of Ford-Werke GmbH. “It offers a long-term perspective for our employees and at the same time encourages them to help shape this electric future.”
Ford’s commitment to an all-electric European operation comes soon after Europe overtook China as the world’s largest plug-in car market, according to the Financial Times. One in ten cars sold in Europe in 2020 were EVs or PHEVs. The UK plans to ban sales of all diesel and gasoline cars starting in 2030, making it imperative for OEMs to update their product lineup plans now if they want to stay competitive.
“We will offer an exceptional range of electrified vehicles, supported by customer-centric digital services and experiences, allowing our customers to come with us on the journey to a fully electric future, starting right now with the launch of the all-electric Mustang Mach-E,” said Rowley. “In combination with our leading commercial vehicle business, this will form the basis of a sustainably profitable Ford business in Europe.”
Deliveries of the Mustang Mach-E in Europe begin sometime later in Q1 of 2021.
