The century-old American automaker Ford announced its transition to EVs. It states that by the end of the decade, 2030, it will only sell electric cars.
Ford Electric cars –
Taking the first step towards the same, Ford announced that its factory in Cologne, Germany, will be transformed into Ford’s first EV production line in Europe. The American automotive brand will spend $1 billion for the same.
The company, founded by Henry Ford, announced that the transformation to EV would be an incremental process.
Plan for the next decade –
While the company will be all-electric by 2030, it states that the transition will be visible by 2024. The automakers plan to convert a majority of its commercial vehicle line up to be “zero-emissions capable, all-electric or plug-in hybrid.” By 2026, it will achieve the goal for its entire commercial vehicle.
The company has also stated that in terms of sales, nearly 70% of its commercial vehicles will be dominated by plug-in hybrids or pure-EVs. Whereas for the passenger vehicles, 100% will be EVs.
This significant step is followed by the news where the American automakers announced that they would invest $29 Billion to boost its shift towards electric vehicles.
The Jim Farley-led automakers had vowed earlier to spend $11.5 billion by 2022 towards EVs. But now it has decided to double the amount and stretched the time till 2025.
Collaboration with Volkswagen –
The American automakers have collaborated with the German auto giant, Volkswagen. The two global automotive companies had agreed on a deal in 2019, allowing Ford to use Volkswagen’s modular electric vehicle platform. This will step will enable Ford to speed up their electrifying process as they will already have a base. The American automakers aim to manufacture 15 million EVs using VM’s MEB platform. Ford has also announced that it will launch at least one pure EV for the European market by 2023, using the MEB architecture.
Government pushes for EVs –
The European governments have put up strict rules to reduce combustion engines and promote EVs. Hence Ford’s decision of aiming to sell more than 600000 EVs using the MEB platform in the European market will help them increase their reach in the market and comply with the EU policy.
In fact, it’s not just Europe; since the Biden Administration has started, many American states have set up aggressive targets towards EVs and halting the sales of fuel-powered engines.
Ford making a statement –
Previously, many in Wall Street have doubted Ford’s ability to move towards advanced technology and compete with companies like Tesla. But with Ford’s new Mustang Mach-E, the American automakers aim to challenge Tesla and other automakers like General Motors and Volkswagen.
Ford isn’t the only automaker to move aggressively towards Electric cars. Other legacy automakers such as General Motors have also announced their shift to electric vehicles. The largest automobile manufacturer in British, Jaguar has also vowed to be an all-electric by this decade.
It will be interesting to see how all these legacy automakers compete with the established EV brands like Tesla and Polestar. But one thing is for sure; the future is electric!