Ford Motor Co (NYSE: F) on Monday revealed plans to launch seven new electric vehicle models in Europe by 2024 and achieve sales of 600,000 EV units a year by 2026.
What Happened: Dearborn, Michigan-based Ford’s plan includes rolling out three new passenger EVs and four new commercial EVs in the region.
The legacy automaker reaffirmed plans to deliver a 6% EBIT margin in Europe in 2023 and a company-adjusted EBIT margin of 10%, saying it aims to sell more than 2 million EVs globally by 2026.
Ford said it will begin making the first medium-sized electric crossover next year in Cologne, Germany — where it is investing $2 billion — and add a second EV to the line-up in 2024.
It is planning to set up with South Korea’s SK Innovation a mega battery assembly in Turkey, which is scheduled to start operations in 2024.
Why It Matters: Ford is rushing to play catchup with current global EV leader Tesla Inc (NASDAQ: TSLA) and Germany’s Volkswagen Group (OTC: VWAGY) as they have a stronger foothold in the European market.
Earlier this month, Ford split its EV and gas-powered units into two separate divisions.
The company also said it will now spend $50 billion by 2026 — up from a previously announced $30 billion investment through 2025 — towards its electrification drive.
The plan also includes slashing $3 billion in structural costs by 2026.
Ford currently makes the Mach-E for the U.S. and the European market at a plant in Mexico. The automaker also sells the E-Transit commercial vans in Europe.
Price Action: Ford stock closed 1.87% lower at $15.7 a share on Monday.
Photo courtesy: Ford Motor Co
