Ford Motor Co 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 TSLA and Germany’s Volkswagen Group 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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
