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Ford's Next Step in European Strategy: A New Vision for Sustainable Business

In a significant move, Ford has recently unveiled its next phase of transformation in Europe, reinforcing its commitment to a profitable and sustainable future in the region. This fresh strategy, articulated by Jim Farley, President and CEO of Ford Motor Company, rests on two primary pillars: strengthening its commercial vehicle sector with Ford Pro services and expanding its range of electrified vehicles.

The automotive giant has established a strategic partnership with the Renault Group, a collaboration aimed at leveraging both companies’ strengths to bring forth innovative and affordable electric vehicles (EVs). This partnership signifies a major step towards modernizing Ford's product offerings, introducing a new generation of multi-energy vehicles expected to debut by 2028. Jim Farley highlighted the importance of participating actively in the competitive European market, describing it as the frontline of global automotive transformation.

Expanding Electric Vehicle Offerings

Ford's product lineup will see the introduction of new, affordable EV models that incorporate distinctive Ford design while adhering to Renault’s efficient manufacturing processes. This collaboration involves developing two unique electric vehicle models on Renault's Ampere platform, with Ford leading the design and dynamic driving aspects to ensure that these vehicles maintain their Ford identity.

Additionally, the partnership extends to light commercial vehicles, where both companies will explore opportunities for joint development and manufacturing, capitalizing on shared platforms that promise greater industrial efficiency.

As Ford ventures into this new electrified era, its European operations will also include enhancements to the Ford Pro division, which goes beyond merely selling vehicles. Ford Pro provides a comprehensive ecosystem of software and services, thereby optimizing businesses' productivity through innovative solutions derived from vehicle data. The Ford Liive Uptime System, for instance, is expected to unlock approximately 820,000 additional days of vehicle usage for European businesses in 2024, underscoring Ford's commitment to supporting its commercial client base.

Push for Policy Change

Amid these ambitious plans, Ford is also calling on European policymakers to adapt CO2 targets in line with current market conditions to foster a sustainable automotive ecosystem. Currently, electric vehicles represent just 16.1% of new registrations, falling short of the required 25% to meet stringent CO2 emission targets by 2025.

To aid in this transition, Ford advocates for a three-part policy approach:
1. Adapting Targets: CO2 goals should reflect actual market acceptance, allowing consumers to utilize hybrid vehicles for longer periods instead of pushing for an immediate shift that may not be feasible.
2. Incentivizing Transition: Consistent governmental incentives must align with manufacturers' substantial investments in EV development, coupled with an expanded charging infrastructure that encompasses both urban and rural areas.
3. Economic Support for Commercial Vehicles: The existing economic pressures on light commercial vehicles impose undue burdens on small and medium-sized enterprises, which are essential to the European economy.

Building on Successful Partnerships

Ford’s expansion strategy is not new; it builds on a history of successful partnerships across Europe with prominent companies like Volkswagen and the Koc Group. These collaborations have been instrumental in enhancing Ford's competitive edge in the market. Ford Otosan works closely within Ford’s European production ecosystem, contributing to the company’s robust light commercial vehicle segment.

Moreover, the alliance with Volkswagen allows Ford to tap into shared capabilities, helping bolster both their commercial and passenger vehicle sectors.

Conclusion
Ford's commitment to Europe is evident in its strategic moves and partnerships as it aims to redefine the automotive landscape with innovative, customer-focused solutions. The next few years will be pivotal as Ford moves forward with its electrification plans and solidifies its operational framework to meet emerging market challenges while remaining steadfast in its mission to lead the industry's transformation towards sustainability.

For more information about Ford and its innovative offerings, visit Ford Motor Company.