Ford to invest $316M to revamp British facility to build components for future EVs
Ford Motor Company will invest more than $300 million to transform its vehicle transmission facility at Halewood in the United Kingdom to make it suitable for building electric power units for its future passenger and commercial EVs in Europe, the American manufacturer has just confirmed.
The Michigan, U.S.-headquartered automobile giant said that it has decided to completely revamp the British vehicle transmission facility to build electric power units for future its EVs. The project will cost an estimated $315 million (£232 million). The facility is expected to start production of EV components in 2024. Once complete, the Halewood facility will become Ford’s first EV production site in Europe.
Since its foundation in the early 1900s, Ford has been a well-established automotive manufacturer and continues to be one of the leading manufacturers in the world even today. However, the world’s accelerating pace of shift from conventional internal combustion engines to EVs has caused a contraction in its market share in the recent years. Thus, the automaker is now shifting its research, resources, and production toward EVs. The all-electric Mustang Mach-E compact crossover SUV and upcoming F-150 Lightning pickup truck are examples of it.
However, Ford hasn’t delivered any EV to customers in Europe. While many rival manufacturers, including electric car pioneer Tesla Incorporated, are already selling EVs across Europe; Form has promised to roll out its first fully-electric car in Europe in 2023, with the support of Volkswagen (VW).
So, the Halewood facility will be revamped to enable it to manufacture EV components to provide a boost to the company’s shift from ICEs to electric powertrains. The company has ensured that the transformation of the facility near Liverpool would not hurt jobs of employees who are already working there.
Stuart Rowley, president of Ford (Europe), said, “This is an important step, marking Ford’s first in-house investment in all-electric vehicle component manufacturing in Europe. It strengthens further our ability to deliver 100 percent of Ford passenger vehicles in Europe being all-electric and two-thirds of our commercial vehicle sales being all-electric or plug-in hybrid by 2030.”
Committed to reducing carbon emissions in line with the Paris Climate Agreement and working according to government policies, Ford has set a goal of 40 per cent of its sales being all-electric vehicles by 2030. It is on track to power all of its manufacturing facilities with 100 per cent locally sourced renewable energy by 2035.