FORD MAKES SIGNIFICANT STEPS IN THE DIRECTION OF AN ALL-ELECTRIC FUTURE IN EUROPE; SEVEN NEW CONNECTED EVS SUPPORT PLANS TO SELL 600,000+ EVS ANNUALLY BY 2026

• Ford plans to introduce three new electric passenger vehicles and four new electric commercial vehicles in Europe by 2024; the company also intends to sell over 600,000 electric vehicles in the region by 2026.
• The European EV push contributes to the acceleration of the Ford+ strategy and the global goal of 2 million+ annual EV production by 2026 and a 10% company adjusted EBIT margin by 2026.
• Electric vehicle production in Cologne, Germany, is now expected to total 1.2 million vehicles over a six-year period, with a total product investment of $2 billion.
• Additionally, Ford announced today the signing of a non-binding memorandum of understanding with SK On Co., Ltd. and Koç Holding to establish one of Europe’s largest commercial vehicle battery manufacturing facilities in Turkey.
• Increases electric and commercial vehicle capacity through the acquisition of Ford’s Romanian manufacturing operations by the Ford Otosan JV, subject to regulatory approval and consultation.
• By combining these initiatives, Ford will reach zero emissions for all vehicle sales and carbon neutrality across its European facilities, logistics, and supply chain by 2035.

Ford announced today significant progress toward an all-electric future in Europe, which will transform the company and result in the introduction of a new generation of seven all-electric, fully connected passenger vehicles and vans by 2024.

Today’s announcement builds on the company’s recent announcement that it has established a new global business unit – Ford Model e – dedicated to the design, manufacturing, and distribution of electric and connected vehicles. These two business units, along with Ford Pro, which is focused on Ford’s commercial vehicle business, will define Ford’s future in Europe.

“I am delighted to see the pace of change in Europe – challenging our entire industry to build better, cleaner and more digital vehicles. Ford is all-in and moving fast to meet the demand in Europe and around the globe,” said Jim Farley, president and CEO of Ford.

“This is why we have created Ford Model e – allowing us to move at the speed of a start-up to build electric vehicles that delight and offer connected services unique to Ford and that are built with Ford-grade engineering and safety.”

Ford expects annual sales of electric vehicles in Europe to exceed 600,000 units in 2026 as a result of its expanded range of electric passenger and commercial vehicle models. Ford also reaffirmed its intention to deliver a 6% EBIT margin in Europe in 2023. The acceleration in Europe bolsters Ford’s goal of selling over 2 million electric vehicles globally by 2026 and achieving a company-adjusted EBIT margin of 10%.

“Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe,” said Stuart Rowley, chair, Ford of Europe. “It’s also about the pressing need for greater care of our planet, making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement.”

These efforts, taken together, will help Ford achieve its global goal of significantly reducing carbon emissions. The company announced today that it is aiming for zero emissions for all vehicle sales in Europe by 2035, as well as carbon neutrality across its European facilities, logistics, and supply chain.

By 2024, seven new electric vehicles will be available.

Following the successful introduction of the all-electric Mach-E in Europe in 2021 and the Mach-E GT this year, as well as the upcoming launch of the E-Transit, Ford today announced plans to introduce seven all-electric vehicles in Europe – three new passenger vehicles and four new commercial vehicles.

Ford will begin production of an all-new electric passenger vehicle, a mid-sized crossover, in Cologne in 2023, followed by the addition of a second electric vehicle to the Cologne production line-up in 2024. Additionally, starting in 2024, Ford’s best-selling passenger vehicle in Europe, the Ford Puma, will be available in an electric version manufactured in Craiova, Romania.

Ford’s iconic Transit range will include four new electric models in 2023 – the all-new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle, as well as the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle.

“These new Ford electric vehicles signal what is nothing less than the total transformation of our brand in Europe – a new generation of zero-emission vehicles, optimized for a connected world, offering our customers truly outstanding user experiences,” said Rowley.

Cologne EV manufacturing and investment

Ford announced today that the first mass-market all-electric passenger vehicle to emerge from the Ford Cologne Electrification Centre will be a five-seat, mid-size crossover. In 2021, sports utility vehicles and crossovers accounted for 58% of all Ford passenger vehicle sales on the continent, an increase of nearly 20% over 2020.

The all-electric crossover pushes Ford to new heights. The vehicle, which will have a 500-kilometer driving range on a single charge, and its name will be revealed later in 2022, with production beginning in 2023.

With the announcement today of the production of a second all-electric passenger vehicle – a sports crossover – at the Ford Cologne Electrification Centre, the facility’s electric vehicle production capacity will increase to 1.2 million vehicles over a six-year period. $2 billion is expected to be invested in the new electric passenger vehicles to be built in Cologne. The investment includes the construction of a new battery assembly facility scheduled to open in 2024.

A new joint venture aims to boost European battery production.

Ford, SK On Co., Ltd., and Koç Holding have signed a non-binding Memorandum of Understanding to establish a new, industry-leading joint venture business in Turkey. The three partners intend to build one of the largest EV battery facilities in the wider European region, subject to final agreement.

The joint venture will be located near Ankara and will focus on the production of high-nickel NMC cells for integration into battery array modules. Production is expected to begin in the mid-decade range, with an annual capacity of between 30 and 45 Gigawatt hours.

The investment that the three partners intend to make in the battery joint venture – which will receive support from the Turkish government – will directly benefit large and small commercial vehicle operators throughout Europe, lowering energy and operating costs and contributing significantly to CO2 reduction.

Increasing Craiova’s EV manufacturing capacity

Ford’s Craiova, Romania, manufacturing plant will be critical to the company’s electric and commercial vehicle growth plans in Europe.

Beginning in 2024, European customers will be able to purchase an all-electric version of Ford’s popular compact crossover, the Ford Puma. The Puma was Ford’s best-selling passenger vehicle in Europe in 2021, and when the all-electric Puma begins production in Craiova in 2024, it will bring this successful new nameplate to an even larger group of European customers.

Additionally, Craiova will manufacture the all-new Transit Courier, a popular light commercial vehicle, and the Tourneo Courier, a compact multi-purpose vehicle, beginning in 2023, with all-electric versions arriving in 2024.

Ford announced this morning that Ford Otosan will acquire the Craiova plant and manufacturing business, subject to regulatory approval and consultation. Ford Otosan, a joint venture between Ford Motor Company and Koç Holding, is one of the automotive industry’s longest-running and most successful joint ventures.

“We welcome this opportunity to grow our joint venture with Koc Holding and leverage this strategic partnership to better utilize our resources and know-how in Romania,” Rowley said. “Ford Craiova is today a strong success story, and we believe that through Ford Otosan’s experience and expertise in electrification and commercial vehicles it can reach even higher levels of achievement.”