Ford said on Wednesday that it will build its next generation of electric vehicles for Europe at its plant in Valencia, Spain.
The automaker said it chose the Valencia factory for its facility in Saarluis, Germany, for its ability to make profitable EVs that meet European customer demand, according to Ford. The company said the factory could start production of electric and connected vehicles by the end of this decade.
The key word here is “profitable,” which means the company expects the EV to be cheaper to manufacture than at its German factory in Spain. Meczyki.Net contacted Ford requesting comment on how this could affect jobs in Germany and Spain. Meczyki.Net will update the article once the company responds.
“Bringing our all-new electric vehicle architecture to Valencia will help us build a profitable business in Europe, secure high-value jobs and enhance Ford’s offering of premium electric, high-performance, fully connected vehicles that complement our European footprint.” meet customer demand.” Stuart Rowley, Ford’s president of Europe and the company’s chief transformation and quality officer, said in a statement.
Meanwhile, Ford’s plant in Cologne, Germany, will continue to serve as the European headquarters of the automaker’s battery-electric Model E business and the site of its first domestic European EV production. The automaker is investing $2 billion in an electric vehicle hub there, with production starting in late 2023.
Ford is betting big on EVs worldwide, investing $50 billion toward its goal of selling 2 million EVs annually by 2026. The automaker plans to launch three new electric passenger vehicles and four new electric commercial vehicles in Europe to sell more than 600,000. Europe is poised to comply with the European Union’s 2035 ban on the production of EV internal combustion vehicles annually by 2026.
It’s worth noting that the EU may not reach its lofty target by that time frame, according to Elmer Keds, a Munich-based global co-leader of the firm’s automotive and industrial practice.
“It is hard to believe that in the end, Europe will completely switch to an ICE (gas engine) embargo,” Keds said. “Everybody knows Europe is known for compromise.”
Instead, EVs are expected to comprise just over 80% of the EU’s new vehicle market in 2035, according to the Alixparts 2022 Global Automotive Outlook released on Wednesday.