Ford Europe just took a huge step towards having an all-electric future. In just about 5 years, in mid-2026, Ford Europe says 100 percent of its passenger vehicles will be zero-emissions capable. Meaning it’s European lineup will consist of plug-in hybrid or all-electric models. And by 2030, the company claims that all European passenger vehicle sales will be all-electric.
It’s a similar case on the commercial side. By 2024, the company’s commercial vehicle lineup will be plug-in hybrid or all-electric models, and by 2030, two-thirds of all commercial sales are expected to be plug-in hybrid or all-electric.
This is part of the huge $22 billion global investment in electrification the company announced earlier this month in its fourth quarter financial report. And that’s not over 10 or 20 years time, it’s through 2025. That’s a lot of money to invest in electrification in just a few years.
Ford Europe has also returned to profit:
“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 percent EBIT margin as part of Ford’s plan to turnaround our global automotive operations.”
Ford Europe’s commercial vehicle sales are the best in Europe for the sixth straight year and is a big contributing factor to it’s recent profitability. This is in part to the company’s alliance with Volkswagen and its Ford Otosan joint venture.
Part of the $22 billion investment is a $1 billion investment in the assembly facility in Cologne, Germany, one of its largest in Europe and home to Ford Europe. This will overhaul the factory and make it into the Ford Cologne Electrification Center, a facility that specifically builds EVs. A first for Ford in Europe. The upcoming EV plant will produce an all-electric passenger vehicle for European customers starting in 2023. A second EV is 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 said. Rowley concluded: “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. In combination with our leading commercial vehicle business, this will form the basis of a sustainably profitable Ford business in Europe.”
Ford plans to release more information on the Cologne facility and on the company’s electrification plans later this year.