Video source: YouTube, Ford Europe
Ford Motor Company (NYSE: Chart F - $11.72 0.54 (4.83%) ) is vowing to convert its entire passenger vehicle lineup in Europe to electric power by 2030, the automaker announced Wednesday.
In order to meet that goal, Ford will spend $1 billion to revamp its plant in Cologne, Germany, to become a base for production of battery-powered cars, the company’s first such EV facility in Europe.
Ford said it is planning a gradual transition to EV production over the next decade.
By mid-2024, the company’s entire commercial vehicle lineup will be “zero-emissions capable, all-electric or plug-in hybrid.”
Ford aims to have 100% of its passenger vehicle fleet to be either all-electric or plug-in hybrid cars that have both an internal combustion engine plus a battery and electric motor by 2026.
By 2030, Ford aims to have two-thirds of its commercial vehicle sales to be all-electric or plug-in hybrid, while all of its passenger vehicles sold will be pure battery-electric.
Stuart Rowley, Ford of Europe’s president, said, “We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020. Now we are charging into an all-electric future in Europe with expressive new vehicles and a world-class connected customer experience.”
The new investment is part of Ford’s plan to spend at least $22 billion globally on electric vehicles from now through 2025.
Rowley told CNN that while tougher regulation is part of the reason for the shift, a growing number of buyers have shown interest in electric vehicles.
Under regulations that took effect at the start of the year, carmakers in Europe must sell more electric vehicles to meet new, lower limits on carbon dioxide emissions or face heavy fines.
Ford’s announcement on Wednesday follows news earlier this week of Jaguar Land Rover’s plans to go all-electric by 2025.
Source: Equities News