What does Ford Europe going electric mean for Australia?

Is the blue oval set to turn green?

Ford of Europe announced plans to become an electric-only brand by the end of the decade overnight, which could have major ramifications for Ford Australia. The local operation sources much of its range from Europe - including the Focus, Puma, Escape and Transit Custom - which are all likely to be affected by this dramatic change.

However, Ford Australia admits it’s too early to know what impact the change will have on its line-up.

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Ford of Europe said it will invest more than $1 billion converting its current Fiesta factory in Cologne, Germany into the Ford Cologne Electrification Center to begin building a new electric model in 2023. The new EV will be based on the Volkswagen Group’s MEB platform, as part of the partnership between the two car brands to co-develop a range of models.

The new EV will be the first European Ford to ditch internal combustion engines, joining the American-developed Mustang Mach-E. It’s only the beginning though, with Ford vowing to cut emissions across its range by the middle of this decade. 

By 2026 the brand aims to offer all of its models with either an all-electric or plug-in hybrid powertrain before transitioning to EV-only by 2030. The same is true of its commercial range too, with EVs and plug-ins coming even sooner, by 2024.

“We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020. Now we are charging into an all-electric future in Europe with expressive new vehicles and a world-class connected customer experience,” explained Ford of Europe president, Stuart Rowley.

Ford’s current line-up of European models - Fiesta, Focus, Puma and Escape - are all relatively new (arriving between 2018-2020) which means meeting the 2026 timeframe is realistic for each of them.

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However, Ford Australia is yet to introduce any EV or hybrid models, with the Escape PHEV expected to be the first when it arrives in the coming months. The wording of the European statement indicates that petrol-powered versions of the current range will still be available until 2030, which will give Ford Australia more time to make the switch. But, if all models in the European range have EV or PHEV variants available within five years it gives Ford Australia the option to be a leader in electrified vehicles - if it chooses.

“We know there is growing appetite among Australian consumers for EVs and hybrid vehicles,” read a Ford Australia statement. “However, it’s too early to discuss what impacts the Ford of Europe move will have on other markets, including Australia. 

“Ford has an important role to play in reducing carbon emissions and improving the health of the planet, and we are proud to have the goal of being carbon neutral by 2050.

“As part of our work to achieve this target, we’re committing to launching our first electrified vehicle − the Escape PHEV (Plug-in Hybrid Electric Vehicle) soon – and we’ve joined the FCAI’s voluntary CO2 Standard, which is an important step in the economy-wide emissions reduction effort required under the Paris Agreement.”