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Released March 31, 2022 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European arm of Ford (NYSE:F) is ramping up its European electric vehicle (EV) push by announcing seven new models and a US$2 billion investment into its German production plant in Cologne.
The company aims to produce seven new cars and vans at the Cologne Electrification Centre by 2024, where it expects vehicle production numbers to jump to 1.2 million over the next six years, reaching annual sales of 600,000 units in 2026. It will also fund the construction of a battery assembly plant at the facility, with commissioning expected in 2024. To date, Ford has only launched the all‑electric Mustang Mach-E and its Mach-E GT models in Europe, with the first E-Transit commercial van expected to launch in the coming months.
Ford's European drive comes just weeks after the company announced plans to hive off its growing EV operations from its internal combustion engine (ICE) business. The company has ambitious plans to make up for a slow start into the sector and will spend $5 billion on EVs in 2022 alone. The company has said that it is "going all in" to the EV sector with a big bump in its expected investment in EVs and other technologies to $50 billion by 2026, up from a previously announced $30 billion spend through 2025. For additional information, see March 8, 2022, article--Ford to Separate Electric Vehicle and Combustion Engine Businesses.
"I am delighted to see the pace of change in Europe--challenging our entire industry to build better, cleaner and more digital vehicles," said Jim Farley, Ford president and chief executive officer. "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."
The company, which will reveal separate results for both car divisions, has estimated that its annual sales of EVs in Europe will exceed 600,000 units in 2026 and that it will deliver a 6% earnings before interest and taxes margin in Europe in 2023. "Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe," added Stuart Rowley, chair, Ford of 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."
Ford Europe has also signed a non-binding memorandum of understanding with South Korean battery giant SK Innovation and Koç Holding to create one of Europe's largest commercial vehicle battery production sites in Turkey. Next year, Ford will begin production of 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 in 2024. An electric version of Its top-selling passenger vehicle in Europe, the Ford Puma, will be launched in 2024 from Craiova, Romania. The remaining four vehicles will be part of the Transit van range, including the new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The company aims to produce seven new cars and vans at the Cologne Electrification Centre by 2024, where it expects vehicle production numbers to jump to 1.2 million over the next six years, reaching annual sales of 600,000 units in 2026. It will also fund the construction of a battery assembly plant at the facility, with commissioning expected in 2024. To date, Ford has only launched the all‑electric Mustang Mach-E and its Mach-E GT models in Europe, with the first E-Transit commercial van expected to launch in the coming months.
Ford's European drive comes just weeks after the company announced plans to hive off its growing EV operations from its internal combustion engine (ICE) business. The company has ambitious plans to make up for a slow start into the sector and will spend $5 billion on EVs in 2022 alone. The company has said that it is "going all in" to the EV sector with a big bump in its expected investment in EVs and other technologies to $50 billion by 2026, up from a previously announced $30 billion spend through 2025. For additional information, see March 8, 2022, article--Ford to Separate Electric Vehicle and Combustion Engine Businesses.
"I am delighted to see the pace of change in Europe--challenging our entire industry to build better, cleaner and more digital vehicles," said Jim Farley, Ford president and chief executive officer. "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."
The company, which will reveal separate results for both car divisions, has estimated that its annual sales of EVs in Europe will exceed 600,000 units in 2026 and that it will deliver a 6% earnings before interest and taxes margin in Europe in 2023. "Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe," added Stuart Rowley, chair, Ford of 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."
Ford Europe has also signed a non-binding memorandum of understanding with South Korean battery giant SK Innovation and Koç Holding to create one of Europe's largest commercial vehicle battery production sites in Turkey. Next year, Ford will begin production of 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 in 2024. An electric version of Its top-selling passenger vehicle in Europe, the Ford Puma, will be launched in 2024 from Craiova, Romania. The remaining four vehicles will be part of the Transit van range, including the new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
