The Electrification Process Accelerated
As part of the plans for the company to fully commit to the production of electric vehicles in the future, Ford will spend $1 billion to modernize its plant in Germany. The company committed to having the entire range of its passenger vehicles in Europe to be “zero-emissions capable, all-electric or plug-in hybrid” by mid-2026 and a “completely all-electric” vehicle range for Europe by the end of the decade.
The car business already has a factory in Cologne and it will use the new investment to convert it into an EV production plant.
“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,” Stuart Rowley, president of the company’s European arm, said.
“It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth,” he added.
The business also plans to transform its commercial vehicle sector in Europe to become zero-emissions capable, plug-in hybrid, or all-electric by 2024. This move comes after a number of other car companies announced similar plans, with Ford looking to take its EV offerings to the next level and compete with leading EV makers like Tesla.
“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,” Rowley added.
Two days ago, Jaguar Land Rover said its car brand Jaguar is set to produce all-electric cars by 2025. Furthermore, the company says it will launch six new EV models of Land Rover over the next five years.
Ola Källenius, chief executive of Mercedes parent company Daimler, said the car business industry is currently undergoing a transformation.
“Next to the things that we know well — to build, frankly, the world’s most desirable cars — there are two technological trends that we’re doubling down on: electrification and digitization,” he said.
US carmaker Ford says it will invest $1 billion to transform its European car assembly plant in Germany into an EV production facility. Moreover, the company promised to offer only electric vehicles in Europe by 2030.