In a strategic shift, Ford Motor Company is reconsidering its ambitious plan to exclusively sell full-electric cars in Europe by 2030. The automotive giant's decision comes as electric vehicle (EV) sales struggle to gain momentum in the region.
Originally, Ford announced its intention to transition solely to battery-electric passenger cars in Europe by the end of the decade, surpassing even the European Union's plan to mandate zero-emissions vehicle sales by 2035. However, the company now acknowledges the possibility of continuing to offer combustion engine vehicles post-2030 if there is sufficient consumer demand.
Martin Sander, head of Ford's passenger cars business in Europe, emphasized the company's commitment to meeting consumer preferences. He stated, "If we see strong demand, for instance for plug-in hybrid vehicles, we will offer them." Sander noted that demand for electric cars has been softer than anticipated, leading to the reassessment of Ford's ambitious targets.
Despite the adjustment in strategy, Ford remains dedicated to the electrification trajectory. Sander affirmed, "We just have to manage our way towards 100 percent electric drivetrains."
Ford has invested significantly in transitioning its operations to accommodate electric vehicle production. A notable example is the $2 billion investment to convert its Cologne factory in Germany to manufacture full-electric vehicles based on Volkswagen Group's MEB platform. The production of the Explorer all-electric compact SUV is set to commence in Cologne in June, with another vehicle built on the MEB platform slated for unveiling the same month.
Further demonstrating its commitment to electrification, Ford will introduce the Puma Gen-E battery-electric version of its popular small SUV later this year. The company has also entered the electric van market, despite slower-than-expected uptake, by launching electric versions of its Transit Custom one-ton van in Turkey.
Concurrently, Ford is streamlining its combustion engine vehicle lineup to prioritize EVs and its lucrative light commercial vehicles business. Production of the Fiesta small car ceased in Cologne last year, with the Focus car set to follow suit in Saarlouis by 2025. Additionally, Ford discontinued production of its Mondeo midsize car and Galaxy/S-Max minivans at its Valencia factory in Spain.
In response to the United Kingdom's zero emission vehicle (ZEV) mandate, which imposes fines on automakers failing to meet EV sales targets, Ford is exploring strategies to mitigate penalties. Sander indicated that Ford will limit sales of combustion engine vehicles in the U.K. rather than selling electric vehicles at significant losses for compliance purposes.
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