Ford is investing in the construction and expansion of its factories in Europe

Ford is investing in the construction and expansion of its factories in Europe

At the end of last month, Ford announced another important step towards an all-electric future, confirming that it has selected its new plant location in Valencia, Spain, as the preferred location for assembling next-generation vehicles. Earlier in April, he announced that he would invest $300 million in the construction of a new commercial vehicle at the Craiova assembly plant in Romania, where a fully electric version will be launched in late 2024.

In addition, it is putting £230m into its power plant in Halewood, England, which will be converted to build power plants for Ford’s future electric cars and vans in Europe. Production of electric drive units at Halewood is expected to begin in mid-2024. It is planned that production capacity will reach approximately 250,000 units per year.

Ford is also moving forward with a new plant construction in Cologne, Germany. He is investing 2 billion dollars to start making electric devices by the end of 2023. By 2026, the company plans to sell 600,000 electric cars annually in Europe.

“We are committed to building a strong and sustainable business in Europe as part of our Ford+ initiative, and this requires focus and tough decisions,” said Jim Farley, president and CEO of Ford. “European car industry is highly competitive and in order to thrive and grow we can never compromise on the best products, great customer experience, high performance and a talented and motivated team.

Sales of electric vehicles across the continent continues to grow rapidly (up 65% to 2.3 million in 2021). [1] ), in addition, the European Parliament voted new CO2 targets for light vehicles in early June, including the requirement for new sales to be 100% zero-emission vehicles by 2035.

“We are accelerating our transformation in Europe by changing the way we do business and building a future where amazing cars and a strong focus on customer service go hand in hand with protecting our planet,” said Stuart Rowley, Ford of Europe president and CEO. of change and quality at Ford Motor Company.

The Ford Saarlouis plant will continue to produce the Ford Focus. The German location will be the European headquarters for the Model e and the site of the first electric vehicle manufacturing site in Europe. Ford’s state-of-the-art Power Plant in Cologne will start production at the end of 2023.

Ford’s plans for an all-electric future in Europe support the global goal of more than 2 million electric vehicle production per year by 2026.

What is the competition doing?

Automotive industry is in the midst of change. Jaguar Land Rover has announced that its Jaguar brand will be fully electric by 2025. The company, owned by Tata Motors, also announced that its Land Rover division will introduce six “pure electric variants” over the next 5 years.

South Korean carmaker Kia will introduce its first dedicated electric vehicle this year, while Germany’s Volkswagen Group will invest around €35 ​​billion in electric vehicles and says it wants to launch 70 all-electric models by 2030.

[1] International Energy Agency Global EV Outlook 2022, May 2022