Dearborn-based Ford Motor Co. has committed to making all of its passenger vehicles in Europe zero emissions capable, all-electric, or plug-in hybrid by 2026 and completely electric by 2030.
On the commercial end, it plans to make its vehicle range zero emissions capable, all-electric, or plug-in hybrid by 2024, with two-thirds of its commercial vehicle sales expected to be all-electric or plug-in hybrid by 2030.
The news comes after Ford reported a return to profit in Europe in the fourth quarter of 2020. The automaker also recently announced a global investment of at least $22 billion in electrification through 2025, nearly twice the company’s previous EV investment plans.
“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,” says Stuart Rowley, president, Ford of Europe.
Central to Ford’s transformation of its European operations over the past two years were a $1 billion improvement in structural costs, addressing underperforming markets, the creation of a more targeted vehicle lineup within three customer-focused business groups, and partnerships to drive growth and improved levels of profitability across the business.
In 2020, Ford achieved its sixth successful year as a leading commercial vehicle sales brand in Europe, boosted by its strategic alliance with Volkswagen and its Ford Otosan joint venture.
Driving further growth in the commercial vehicle business will be an ecosystem built around connected services, including FordPass Pro for fleets of up to five vehicles and the launch of Ford Fleet Management, created by Ford and ALD Automotive in 2020 to maximize productivity for fleet customers seeking bespoke services to keep their fleets on the road.
Ford and Google also announced the establishment of Team Upshift to drive data-driven opportunities.
Spearheading Ford’s investment into an all-electric future for Europe is a $1 billion investment to modernize the company’s vehicle assembly facility in Cologne, Germany, one of the largest manufacturing centers in Europe and home of Ford of Europe.
The investment will transform the existing vehicle assembly operations into the Ford Cologne Electrification Center for the manufacture of electric vehicles, the first of its kind for Ford in Europe.
Ford’s first European built, volume all-electric passenger vehicle for European customers will be produced at the facility from 2023, with the potential for a second all-electric vehicle built there under consideration.