**Ford’s Ambitious Electric Plan Faces Uncertainty in Europe**
Ford’s plan to transition to an all-electric lineup in Europe by 2030 has been deemed “too ambitious” by Marin Gjaja, the chief operating officer of Ford’s Model E electrification division. He stated that the company will continue to offer hybrid vehicles due to wavering customer adoption of electric vehicles (EVs) and uncertainty surrounding EV demand and legislation. Gjaja emphasized the importance of customer preferences, stating, “I don’t think we can go all in on anything until our customers decide they’re all in.”
The primary reasons for Ford’s renewed focus on hybrid powertrains are high battery costs and the removal of government incentives, which have hindered EV uptake. Despite this, Ford remains committed to electric vehicles and plans to introduce electric versions of the Puma and Tourneo Courier next year. The company recently unveiled the new Capri as its third electric passenger car for Europe, following the Mustang Mach-E and Explorer. However, the Ford Focus is set to retire in mid-2025, leaving the Tourneo, Mustang, Puma, and Kuga as the only combustion cars on sale.
**Maintaining a Flexible Powertrain Offering**
Ford believes that maintaining a flexible powertrain offering is crucial to its success in Europe’s mainstream car market. To achieve this, the company is developing a new ‘multi-energy’ platform that will support various powertrain options. This approach will allow customers to choose the right vehicle and powertrain for their needs. The new platform’s first model is scheduled to begin production in 2027, with projected volumes of up to 300,000 units per year.
While Ford has not fully outlined the future of its Valencia factory beyond the end of production of the current-generation Kuga, it has revised its plans to focus on models that can be powered by combustion engines. Gjaja stated that the company is still working on its plans for the Valencia factory but believes a ‘multi-energy’ approach gives Ford the best chance of success in the European market.
**Investment Strategy Amidst Uncertainty**
Ford’s investment strategy is challenging due to the uncertainty surrounding the demand for electric cars and the legislative and regulatory framework surrounding them. Gjaja emphasized the difficulty of predicting when actual demand for electric cars will align with the necessary infrastructure and regulations. However, he remains confident that Ford’s fleet will eventually become highly electrified, possibly even completely electric, once battery costs and energy density are optimized. The timeline for achieving this remains uncertain, as Gjaja acknowledged that no one can accurately predict when this transition will occur.
Despite the challenges and uncertainties, Ford is committed to competing aggressively in the evolving automotive market. The company recognizes that customers want the freedom to choose the right powertrain and vehicle for their use case. By offering a range of powertrain options, including pure internal combustion engines (ICE), pure electric vehicles, and hybrid models, Ford aims to meet customer preferences and maintain its market position.
**Conclusion**
Ford’s plan to go all-electric in Europe by 2030 has faced setbacks due to wavering customer adoption of EVs and uncertainty surrounding EV demand and legislation. The company has decided to continue offering hybrid vehicles alongside its electric lineup. Ford recognizes the importance of maintaining a flexible powertrain offering to meet customer needs and remain competitive in Europe’s mainstream car market. The development of a ‘multi-energy’ platform will enable Ford to offer a variety of powertrain options. While the investment strategy amidst uncertainty is challenging, Ford remains confident in the eventual transition to a highly electrified fleet. However, the timeline for achieving this transition remains uncertain.