Ford Ditches Plan to Sell Only EVs on European Market by 2030

Ford Motors has announced that it is ditching its goal of fully electrifying its vehicle lineup in Europe by 2030. The American automaker had set the relatively ambitious goal of only selling electric cars on the European market by the end of the decade, but it is scaling back those plans in the wake of slower-than-expected EV uptake.

Model E electrification division chief operating officer Marin Gjaja says Ford will continue selling ICE cars as well as battery electric vehicles (BEVs) and hybrids. The recent slowdown in electric vehicle sales has forced most established automakers to rethink their electrification plans. With fewer customers opting to buy electric cars amid high purchase costs, high interest rates and rising living costs, carmakers such as Ford are revising their strategies, reducing their investments in electric cars and focusing on diverse product lines.

Gjaja notes that high electric vehicle-battery costs coupled with the uncertainty around EV policies and subsidy programs have made many customers reconsider going electric. Electric vehicles still cost more than their gas-powered counterparts, and a significant portion of the market relies on government subsidies to reduce the costs. Customers are less likely to purchase electric cars if they are uncertain they will receive this financial support.

Consequently, Gjaja says Ford will continue selling ICE cars and focus on developing hybrid powertrains. He adds that Ford can’t focus all its attention on a single product line until the market decides it is all in. Continuing to work toward full electrification in the European market by 2030 wouldn’t be a good business choice for both Ford and its customer base, he says.

Despite scaling back its electrification goals, Gjaja notes that electrifying its entire vehicle lineup is still one of Ford’s core long-term goals. If the company can figure out a balance between energy density and EV battery costs, he observes, Ford could ultimately end up with a “highly electrified fleet” of vehicles. Electrification has been a core tenet of the Biden administration, and the federal government has invested billions of dollars into building America’s EV market and developing a robust public charging network.

As transportation is responsible for roughly one-third of America’s greenhouse-gas emissions, electrifying the segment would bring the United States one step closer to curbing its emissions and mitigating climate change. Carmakers will most likely be subject to stricter emission standards over the next few decades to speed up total electrification. In the meantime, however, Ford will focus on gas-powered cars, hybrids and EVs to remain competitive and better serve their customers’ needs.

These legacy automakers are also feeling the pressure from Chinese EV makers such as Kandi Technologies Group Inc. (NASDAQ: KNDI). The threat posed by this competition is giving EV makers in the west plenty to think about if they are to remain competitive in the decades to come.

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