Ford Commits to Boosted BEV Production in Europe
Following a huge investment in production capacity in Europe, Ford says it will launch seven new BEV models to the market by 2024 to join the existing Mustang Mach-E and the E-Transit.
The vehicles, including both LCVs and passenger cars, build on the recent news that the company has created a new global business unit – Ford Model e – focused on the design, production, and distribution of electric and connected vehicles. Together with Ford Pro, the business unit focused on Ford’s commercial vehicle business, these two business units will define the brand’s future in Europe.
Ford expects its annual sales of electric vehicles in Europe to exceed 600,000 units in 2026, and also reaffirmed its intention to deliver a 6% EBIT margin in Europe in 2023. The acceleration in Europe supports Ford’s goal to sell more than two million BEVs globally by 2026 and deliver company adjusted EBIT margin of 10%.
BEV production
Ford has confirmed that the first volume all-electric passenger vehicle to come out of the Ford Cologne Electrification Center will be a five-seat, medium-sized crossover. In 2021, sports utilities and crossovers accounted for 58% of all of the automaker’s passenger vehicle sold in the continent, up nearly 20% from 2020. The new vehicle, whose name will be revealed later this year, is expected to have a 310-mile driving range on a single charge, with production commencing in 2023.
Investment in the new electric passenger vehicles to be built in Cologne is expected to be $2Bn. The investment includes a new battery assembly facility scheduled to start operations in 2024.
On the LCV front, Ford’s Transit range will include four new electric models – the all-new Transit Custom one-ton van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.
Jim Farley, Ford president and CEO, said: “I am delighted to see the pace of change in Europe – challenging our entire industry to build better, cleaner and more digital vehicles. 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.”
— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_
