Following the news that Ford has unveiled a new ramped-up electrification strategy that includes making all its passenger cars sold in Europe zero emissions capable by mid-2026 and transforming its Cologne site into a hub for electric car manufacturing;
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Ford is the latest carmaker to bite the electric bullet and today’s announcement follows a number from car companies – including Jaguar Land Rover this week – eager to ratchet up their electrification strategies in the face of tighter regulatory pressures and constraints ahead for fossil-fuel powered vehicles over the next decade.
“There really is no alternative for car companies as lawmakers across the world start to plot mandating fossil-fuel powered vehicles out of the market as part of clean air and broader greenhouse gas lowering strategies.
“Automotive electrification is an expensive proposition for vehicle manufacturers, but they are nevertheless concluding that they must take the investment hit to be well-positioned competitively later this decade when the end for new internal combustion engine (ICE) vehicle sales will be in sight in a number of markets.
“Moreover, there are investors who want to see that established automotive companies can take on Tesla and other new entrants to the market who are perceived as more agile and able to move quickly with new technologies.
“Ford, like other volume vehicle producers, will want to ramp-up electrified vehicle production numbers as soon as possible and exploit significant scale economies in the medium- and long-term. Relying on incumbent ICE technology for profits has now become high-risk as electric vehicle sales rise and their market share grows from niche to mainstream.
“Considering battery-powered electric vehicles along with hybrid-powered models, GlobalData forecasts 46.1% of all new vehicles sold globally to be electrified in some form by 2030. It will be much higher in Europe. Wait-and-see is no longer a sensible strategic option – urgency is required.”