Ford makes a big electrical effort in Europe with new launches

(Reuters) – Ford Motor Co. announced Tuesday the launch of eight electric vehicles in Europe this year, a milestone in its goal of reaching a majority of its total electric car sales by the end of 2022 .

The US automaker is moving into electric vehicles at a time when automakers around the world are striving to reduce their carbon dioxide emissions to meet the higher environmental standards in the European Union.

Ford's launches include electric variants of the Kuga and Puma SUVs and the Mondeo sedan. The automaker also plans to launch another nine electric vehicles by 2024 in Europe, including a new electric sport utility vehicle inspired by Mustang next year.

The automaker unveiled the models at the motor show in Frankfurt, Germany, and announced the creation of a partnership with six major energy providers in Europe to provide wall-mounted enclosure services. domestic charging.

The automaker, along with its competitors, is facing stagnant demand and rising costs as it invests billions of dollars in electric, hybrid and autonomous vehicles to boost sales.

The company's European business has been losing money for years and pressure to restructure its business has increased after rival General Motors increased profits by selling its European brands Opel and Vauxhall to the French company Peugeot SA.

In an effort to reduce development and manufacturing costs, Ford has partnered with Volkswagen in July to jointly develop electric vehicles and autonomous vehicles.

VW has agreed to invest $ 3.1 billion in Ford's Argo AI Autonomous Unit, but estimates it can generate revenues of up to $ 20 billion by sharing the architecture of its SEM electric vehicle with Ford in Europe.

Ford has announced plans to build more than 600,000 electric vehicles in Europe over a six-year period, buying components and vehicle foundations from VW, helping to cut costs.

The cooperation with VW on electric vehicles in Europe is part of the $ 11.5 billion global investment previously announced by Ford.

The challenge of investing in low-emission vehicles while having to revise combustion engines to adapt to the new clean air rules has forced European car manufacturers to reduce their fixed costs and streamline their model portfolios.

The company will also introduce a smartphone app that will allow its users and operators to locate, navigate and pay for the shipment.

Ford said it expects its range of electric vehicles to exceed sales of gasoline and diesel models by 2022 in Europe and plans to sell 1 million electric vehicles there by then. (Bit.ly/2m2uZA7)

Shares of the company fell more than 5% to $ 9.04 on Tuesday after Moody's downgraded its senior unsecured credit rating in junk territory as the automaker pursued a lengthy and costly restructuring plan, with a cash cost of about $ 7 billion.