Ford’s $1 Billion Investment in Electric Vehicles
EV Manufacturing in Cologne, Germany
Ford (F) is investing $1 billion in an electric vehicle manufacturing plant in Cologne, Germany. Cologne is Ford’s European headquarters and it has been building cars there since before World War II.
The automaker announced the plan yesterday, adding that it aims to make all its European passenger vehicle offerings electric by 2030. Ford plans to have its first European-built EV ready to sell by 2023. “Our announcement today to transform our Cologne facility is one of the most significant Ford has made in over a generation. It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth,” said Stuart Rowley, President of European Business at Ford.
Other Legacy Carmakers Ramp Up EV Offerings
Ford is not alone in working to grow its EV offerings. An increasing number of governments around the world are making commitments to phase out diesel and gasoline vehicles. Legacy carmakers are rushing to stay relevant and compete with newer companies like Tesla (TSLA) as these changes take place.
General Motors (GM) last month announced that it plans to make the shift away from gas-powered vehicles by 2035. Jaguar Land Rover (TTM) said earlier this week it will make its Jaguar luxury brand fully electric by 2025, and that by 2030, it plans to roll out electric versions of all its models.
Ford’s Plans Beyond Europe
Ford’s investment in the Cologne plant is part of a larger initiative that stretches beyond Europe. Ford plans to invest $22 billion in its electric vehicle business around the world by 2025.
EV sales climbed in Europe and China last year, but in the US they fell by about 10%. Some analysts believe EV sales will pick up in the US as more models become available and as more infrastructure to support EVs is built. The Biden administration has promised to install half a million public EV chargers by 2030, which could help Americans feel more ready to buy EVs. Investors will be eager to see which of the many companies working to gain market share in this industry will come out ahead.
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