Ford investing $1 billion in European EV manufacturing

Every Ford passenger vehicle sold in Europe in five years’ time will be zero-emissions capable, all-electric or plug-in hybrid, and by 2030 the range will be completely all-electric. Similarly, Ford’s entire commercial vehicle range will be zero-emissions capable, all-electric or plug-in hybrid by 2024, with two-thirds of Ford’s commercial vehicle sales expected to be all-electric or plug-in hybrid by 2030.

Today’s news comes after Ford reported a return to profit in Europe in the fourth quarter of 2020 and announced it was investing at least US$22 billion globally in electrification through 2025, nearly twice the company’s previous EV investment plans.

“We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020. Now we are charging into an all-electric future in Europe with expressive new vehicles and a world-class connected customer experience,” said Stuart Rowley, president, Ford of Europe. “We expect to continue our strong momentum this year in Europe and remain on track to deliver our goal of a six per cent EBIT margin as part of Ford’s plan to turnaround our global automotive operations.”

Ford Cologne $1 billion investment

Spearheading Ford’s advance into an all-electric future is a new $1 billion investment to modernise its vehicle assembly facility in Cologne, Germany. The investment will transform the existing vehicle assembly operations into the Ford Cologne Electrification Center for the manufacture of electric vehicles, Ford’s first such facility in Europe.

Ford 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. It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth,” Rowley commented.