Taking forward its intent expressed recently on creating a new global business unit – Ford Model e – focused on the design, production, and distribution of electric and connected vehicles, Ford has announced significant strides towards an all-electric future. Accordingly, the automaker has announced its all-electric future in Europe, which will see the company transformed and offer a new generation of seven all-electric, fully-connected passenger vehicles and vans by 2024.
Together with Ford Pro, the business unit focused on the company’s commercial vehicle business, and these two business units will define its future in Europe.
Jim Farley, President and CEO, Ford, is delighted to see the pace of change in Europe – challenging its 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,” he says.
With its extended range of electric passenger and commercial vehicle models, Ford expects its annual sales of electric vehicles in Europe to exceed 600,000 units in 2026 and reaffirmed its intention to deliver a 6% EBIT margin in Europe in 2023. The acceleration in Europe supports Ford’s goal to sell more than two million EVs globally by 2026 and deliver company adjusted EBIT margin of 10%.
Stuart Rowley, Chair, Ford of Europe, says, “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.”
These efforts will significantly support Ford’s global plans to reduce carbon emissions. With the current announcement, the company targets zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.
Seven New EVs By 2024
Following the introduction of the all-electric Mach-E in 2021 and Mach-E GT in Europe this year, plus the launch of the E-Transit in the next quarter, the American automaker unveiled plans for seven
all-electric vehicles to join the family in Europe – three new passenger vehicles and four new commercial vehicles.
According to the plan, starting in 2023, the company will begin producing 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 2024. In addition, its top-selling passenger vehicle in Europe, the Ford Puma, will be available as an electric version made in Craiova, Romania, starting in 2024.
Reaffirming its leadership as Europe’s top-selling commercial vehicle brand, its iconic 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.
Rowley says these new electric vehicles signal nothing less than the total transformation of the company’s brand in Europe – a new generation of zero-emission vehicles optimised for a connected world, offering our customers truly outstanding user experiences.
Investment in Cologne
During the announcement, the global automaker confirmed that the first volume all-electric passenger vehicle to come out of the Ford Cologne Electrification Centre will be a five-seat, medium-sized crossover. In 2021, sports utilities and crossovers accounted for 58% of all passenger vehicles sold in the continent, up nearly 20% from 2020.
The all-electric crossover breaks new boundaries as it is capable of a 500km driving range on a single charge. The company will reveal the vehicle and its name later this year, with production commencing in 2023.
To match its intent, the production at the facility will be increased to 1.2 million vehicles over a six-year timeframe. Investment in the new electric passenger vehicles to be built in Cologne is expected to be $2 billion. The investment includes a new battery assembly facility scheduled to start operations in 2024.
New JV
Ford, SK On Co and Koç Holding have signed a non-binding Memorandum of Understanding for a new joint venture business in Turkey to support its vehicle electrification plans. Subject to execution of a final agreement, the three partners plan to create one of the largest EV 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 30 to 45 Gigawatt hours.
The investment the three partners are planning in the battery joint venture – 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.
Craiova’s Manufacturing Capacity
The vehicle maker’s manufacturing plant in Craiova, Romania, will play a significant role in the company’s electric and commercial vehicle growth plans in Europe. Consequently, Ford Otosan will assume ownership of the Craiova plant and manufacturing business, subject to regulatory approval and consultation. Ford Otosan, a joint venture between Ford Motor Company and Koç Holding, is one of the longest-running and most successful joint ventures in the global auto industry.