Ford Europe has freshly announced another significant step towards an all-electric future. It confirmed that its Valencia plant, Spain has been chosen to build vehicles using a next-generation vehicle architecture. The Valencia plant, subject to product approvals, could begin producing breakthrough electric and connected cars later in the decade.
Ford is moving ahead with a $2B conversion of its Cologne, Germany operations in order to start producing electric passenger cars starting in 2023. Ford’s European strategy includes an exciting lineup of electric vehicles, including a Ford Puma electric version, as well as expanding its market leadership in the commercial segment by offering electric Ford Pro vehicles and related services. Ford Europe expects to sell 600,000 Electric vehicles by 2026.
Jim Farley, Ford president, and CEO stated that “We are determined to build a vibrant and sustainable business in Europe as part of our Ford+ plan. The European automotive industry is highly competitive. To thrive and grow, we cannot settle for anything less than unbeatable products, an exceptional customer experience, extremely lean operations, and a talented, motivated team.”
Electric vehicle sales in Europe continue to rise rapidly. They grew by 65% to 2.3 Million in 20211. The European Parliament also voted earlier this month for new CO2 targets. This includes a requirement that all new light-duty vehicles must be zero-emissions vehicles by 2035.
Stuart Rowley, chair of Ford of Europe and chief transformation and quality officer at Ford Motor Company, stated that “We are accelerating the transformation in Europe, and that he is reimagining how he does business. He said, “Amazing vehicles and a relentless focus on customer service go hand-in-hand with protecting our planet.”
Bringing our all-new electric vehicle architecture from Europe to Valencia will help us create a profitable business, secure high-value jobs, and increase Ford’s offering of premium electric, high-performance, fully connected vehicles that can meet the demands of our European customers.
After extensive consultations with teams from Saarlouis (Germany) and Valencia (Spain), the decision was made today. Ford’s Saarlouis plant will continue to make the Ford Focus passenger car. However, the company is still evaluating potential site designs.
Ford reiterates its commitment to Germany
Ford today also reiterated its commitment towards Germany as the headquarters for its European Model e-business and the location of its first domestic European-produced electric vehicle. Production will begin in the latter part of 2023 at the state-of-the-art Cologne Electrification Centre.
Rowley stated that Ford is investing heavily in electric vehicle manufacturing in Germany and that they are committed to Germany as their headquarters in Europe. We look forward to advancing this work with our German partners and the entire region. We need innovative product designs, top technology and engineering, optimized source, and the evolution of our industrial operations in order to secure new products for Europe.
Ford’s all-electric future in Europe will depend on the next-generation architecture
Ford Europe’s next-generation architecture is an important step in achieving an all-electric future. It will allow Ford to build a successful business and make a positive contribution to society.
Ford’s European plans for all-electric future support the global goal to produce 2 million+ EVs annually by 2026, and a 10% company-adjusted EBIT margin by 2026.