Ford Europe goes all-in on zero-emissions vehicles with all models being electric by 2030

Cologne site begins $1 billion transformation on the road to sustainable profitability

By
Ian Osborne
February 17, 2021
Category:
EV Life

Ford is taking a significant step forward today in its European transformation with a commitment to go all-in on its electric vehicles. They also plan to substantially grow and electrify its leading commercial vehicle business. Ford committed today that by mid-2026 100-percent of its passenger vehicle range in Europe will be zero-emissions capable, all-electric or plug-in hybrid, and will be completely all-electric by 2030.

Similarly, Ford’s entire commercial vehicle range will be zero-emissions capable, all-electric or plug-in hybrid, by 2024. Two-thirds of Ford’s commercial vehicle sales are expected to be all-electric or plug-in hybrid by 2030. The news comes after Ford reporting, in the fourth quarter of 2020, a return to profit in Europe and announced it was investing at least $22 billion (£15.8 billion/€18.2 billion) globally in electrification through 2025. This is nearly twice the company’s previous electric car and vehicles investment plans.

Stuart Rowley, president of Ford of Europe, said: “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.

“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.”

Central to Ford’s transformation of its operations in Europe over the past two years were a $1 billion (£722 million/€830 million) improvement investment. This was for structural costs, addressing underperforming markets, the creation of a more targeted vehicle line-up within three customer-focused business groups, and partnerships to drive growth and improved levels of profitability across the business.

Spearheading Ford’s advance into an all-electric future is a new $1 billion investment to modernise its vehicle assembly facility in Cologne, Germany. This is one of its largest manufacturing centres in Europe and the home of Ford Europe. The investment will transform the existing vehicle assembly operations into the Ford Cologne Electrification Centre 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. There’s also the potential for a second all-electric vehicle built there under consideration.

This is a huge step forward for the motor giant and shows the importance of not just plug-in models, but zero-emission all-electric vehicles for both passenger and commercial use. Hopefully, this will lead to other big automakers speeding up their plans to go all-electric.

Rowley added: “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.

“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.”

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