Ford’s Shift Towards Electric Vehicles: A Game Changer in Europe?

Ford has been steadily losing market share in internal combustion engine vehicles in Europe, currently holding just 3.4% of the market. In response to this decline, Ford has made a major shift in their strategy by deciding to focus solely on producing electric vehicles exclusively in Europe by 2030. They aim to sell 2 million electric cars per year by 2026 and achieve a profit margin of 10%.

To facilitate this transition, Ford has reduced its European lineup from 18 to six models and is utilizing Volkswagen’s MEB electric vehicle platform to build new electric cars. One of the new electric models they plan to launch is the Explorer, a 4.46-meter-long electric SUV designed specifically for the European market. They expect to sell around 10,000 units a year in France alone.

In addition, Ford will introduce a sportier SUV called the Capri and an electrified version of the Puma in 2025 as they continue their shift towards electric vehicles. As part of their commitment to electrification, Ford is also partnering with Allego to install fast-charging stations at their dealerships to support electric vehicle drivers.

Despite concerns about the slowing electric vehicle market in Europe, Ford remains steadfast in their belief that electric vehicle penetration will continue to grow, with forecasts ranging from 50-70% of sales by 2030. Their strategy is focused on offering premium electric models and expanding their product line to meet the changing demands of the market.

Ford’s decision to discontinue several models like Mondeo, C-Max and Fiesta was not an easy one but it was necessary given the declining sales in internal combustion engine vehicles. However, with this change they are now focusing on producing only electric vehicles which could be a game changer for them in Europe.

The company’s decision comes after years of struggling with declining sales and job cuts across various factories across Europe due to loss of market share in internal combustion engine vehicles.

Ford’s move towards electrification marks a significant shift away from their traditional business model and into a new era of sustainable transportation. The company’s dedication towards investing in technology and innovation along with its commitment towards sustainability will surely pay off in long run as demand for clean energy continues to grow globally.