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| Ford relies on electric cars in Europe |
Ford has announced plans to launch seven new electric vehicles in Europe as part of a $2 billion investment. By 2026, the automaker aims to sell 600,000 battery-powered cars on the continent.
The company expects annual sales of electric vehicles in Europe to exceed 600,000 by 2026. The company has also confirmed its intention to achieve a profit margin of 6% in Europe by 2023.
This news comes after the company announced that it will split its business into two segments: one focused on conventional fuel vehicles called Ford Blue and the other on electric and software vehicles called Ford Model E.
The company expects half of its global sales to be electric vehicles by 2030, including all passenger cars in Europe.
The automaker previously announced that it would spend $1 billion to convert a plant in Germany into the continent's first electric vehicle production line.
The company now says it expects to produce 1.2 million vehicles over six years for a total investment of $2 billion.
These include three new cars, including a sports crossover with a range of up to 500 km. Along with the electric version of the Ford Puma, the crossover will go into production at the company's plant in Romania in 2024. The company has not provided any information about the third car.
Ford also put four commercial electric vehicles into production, including electric versions of the Transit Courier and Tourneo Courier.
Ford is heading towards an all-electric future in Europe
The company plans to build a battery plant in Turkey with SK On Co, a subsidiary of South Korean battery giant SK Innovation.
The two companies previously formed a joint venture to explore plans to build a battery plant in the United States. The South Korean company supplies batteries for Ford Mustang Mach-E cars.
Ford is in a very dangerous race against its rivals, as the auto industry struggles to catch up with Tesla, the world's most valuable and best-selling electric car maker.
Ford sells more F-Class trucks each year than Tesla makes overall. But investors have welcomed Elon Musk's vision of an electric future, with higher stock prices and greater confidence in the company's future prospects.
Ford's CEO is trying to change this narrative by showing how competitive his company is.
The company recently announced that it will double production of its next electric truck, the F-150 Lightning. Production of the Mustang Mach-E has also tripled and is expected to reach more than 200,000 units per year by 2023.