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Ford Model e unit announces massive expansion of EV initiative in Europe: 7 new EVs by 2024

Ford plans to have 7 new connected EVs by 2024, with production reaching 600,000 units annually by 2026. (Credit: Ford)

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Ford’s electric vehicle unit — known as Model e — announced today that it would take massive steps to expand its electric vehicle project in Europe. Ford, which recently split its electric vehicle and combustion engine businesses into two divisions, is aiming to roll out seven new electric vehicles in Europe by 2024 with an annual production capacity of 600,000 vehicles by 2026.

Ford announced the expansion plan today, recognizing the accelerating pace of electrification in the European market. “I am delighted to see the pace of change in Europe – challenging our entire industry to build better, cleaner, and more digital vehicles. Ford is all-in and moving fast to meet the demand in Europe and around the globe,” Ford CEO Jim Farley said in a statement. “This is why we have created Ford Model e – allowing us to move at the speed of a start-up to build electric vehicles that delight and offer connected services unique to Ford and that are built with Ford-grade engineering and safety.”

Ford’s Model e division aims to take advantage of a Tesla-like business model that completely separates the electric vehicle projects from the traditional combustion engine powertrains that Ford built its legacy on. As one of the most-committed legacy automakers in the transition to electrification, Ford recently announced it would commit to a production goal of 600,000 EVs by the end of 2023.

In Europe, electric vehicles have become extremely popular, becoming a more common choice of consumers than combustion engine vehicles in some regions. Ford is turning some focus toward this market as it is likely to be one of the biggest catalysts to EV sales company-wide. Ford said it expects annual sales in Europe to exceed 600,000 units in 2026, reaffirming its intention to deliver a 6 percent EBIT margin in Europe in 2023.

“Our march toward an all-electric future is an absolute necessity for Ford to meet the mobility needs of customers across a transforming Europe,” Ford of Europe Chairman Stuart Rowley said. “It’s also about the pressing need for greater care of our planet, making a positive contribution to society and reducing emissions in line with the Paris Climate Agreement.”

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Seven New EVs by 2024

With the Mustang Mach-E already having a successful introduction into the European market, Ford will also welcome the E-Transit to the region in Q2 2022. By 2024, Ford plans to introduce seven additional models to its electric lineup in Europe. It will include three new passenger vehicles and four new commercial cars.

In 2023, Ford will begin production of an all-new passenger EV. The company says it will be a “medium-sized crossover, built in Cologne with a second electric vehicle added to the Cologne production line-up in 2024.” Ford will also introduce an electric version of the Ford Puma. It will be produced in Craiova, Romania, starting in 2024.

Ford, which recently split its electric vehicle and combustion engine businesses into two divisions, is aiming to roll out seven new electric vehicles in Europe by 2026 with an annual production capacity of 600,000 vehicles. (Credit: Ford)

Ford is Europe’s top-selling commercial vehicle brand, and the company plans to introduce several new electric models of its Transit van — “the all-new Transit Custom one-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next-generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024.”

“These new Ford electric vehicles signal what is nothing less than the total transformation of our brand in Europe – a new generation of zero-emission vehicles, optimized for a connected world, offering our customers truly outstanding user experiences,” Rowley added.

Ford’s Cologne, Germany EV Hotspot

Ford also said that the first all-electric passenger vehicle to come out of the new Electrification Centre in Cologne will be a five-seat, medium-sized crossover. Crossovers are a widely popular body style and accounted for 58 percent of all Ford passenger vehicles sold in Europe in 2021. Ford plans to unveil the name and design of the new crossover in 2022. Production will begin in 2023.

Ford’s Cologne Electrification Center (Credit: Ford)

Additionally, Ford said its total investment in Cologne is expected to be $2 billion with the investment including plans for a new battery assembly facility that will begin production in 2024. The automaker projects at least 1.2 million vehicles produced at the Cologne Electrification Centre by 2030.

New battery partnership with SK On Co., Ltd., and Koç Holding

Ford announced that it also signed a non-binding Memorandum of Understanding for a new, industry-leading joint venture in Turkey with battery manufacturers SK On Co., Ltd. and Koç Holding. The plant will be located near Ankara, the country’s capital, and will manufacture high-Nickel Nickel-Manganese-Cobalt (NMC) cells for assembly into battery array modules. Nickel cells have been a focus of many large automakers transitioning to electric cars, as it is widely available. However, surging prices of the metal have contributed to a potential delay in these plans, at least in the short term.

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Production is expected to start as early as mid-decade, Ford said, with annual capacity likely to be between 30 and 45 Gigawatt hours.

Ford said the investment will also be supported by the Turkish Government and will benefit large and small commercial vehicle operators across Europe, all while decreasing CO2 emissions.

EV Production Boost in Romania

Ford will also introduce an electric version of its best-selling European vehicle, the Puma. European customers will be able to purchase an all-electric version of the vehicle in 2024. Additionally, the Transit Courier and Tourneo Courio will be produced a the plant in 2023, with all-electric versions being offered the following year.

Ford’s joint venture with Koç Holding, known as Ford Otosan, will assume ownership of the Craiova, Romania plant. “We welcome this opportunity to grow our joint venture with Koc Holding and leverage this strategic partnership to better utilize our resources and know-how in Romania,” Rowley said. “Ford Craiova is today a strong success story, and we believe that through Ford Otosan’s experience and expertise in electrification and commercial vehicles it can reach even higher levels of achievement.”

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla creates clever solution to simplify and improve its Service

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

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tesla service
Credit: Tesla

Tesla has created a clever solution to simplify and improve its Service. Tesla performs most of the services that are needed on its vehicles at its company-owned Service Centers.

However, service has been a weak point of the company, as some regions have fewer Service Centers than others. This can cause long wait times for Tesla owners in some parts of the country.

There are also instances where customers do not agree with what Tesla is saying about their vehicle. In fact, one instance that revealed this new change Tesla is making to its Service was precisely that.

One owner posted on X that his vehicle’s battery seal had failed after a recall was issued. Tesla insurance and Tesla Service both did not assist, and it took CEO Elon Musk stepping in to get the issue resolved:

Another owner suggested there should be a more streamlined communications process between the customer and the Service Center, a solution that has been missing.

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

Elon Musk wants Tesla Service to fix two-thirds of cars in the same day

Jegannathan said that Tesla has started to share local and regional leader contact information so customers have the ability to reach out when they have complaints or disagree with warranty claims, changes in estimates, or initial diagnostics.

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It is available in a handful of locations already, and Jegannathan said that once abuse guardrails are built, this will expand to all locations:

This would be a major improvement in the Service portion of Tesla’s business. There are common disagreements between Service and customers, specifically when Service’s suggestions don’t align with the customer’s beliefs.

When it comes to things like a warranty claim, these issues are not really up for interpretation. Instead, the repairs should be made. If there is a misunderstanding on Service’s side, a simple message from the customer could have resolved the issue. That’s basically what happened here.

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Investor's Corner

Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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(Credit: Tesla)

Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”

That phrase could be used for both the company’s status and the world in general.

Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.

He describes the global shift that will occur over the next few years:

“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”

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The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.

Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:

“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”

Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.

Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter

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He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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Elon Musk

Tesla expands Robotaxi program in Austin to new riders

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

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Credit: @TerrapinTerpene/X

Tesla is expanding its Robotaxi program in Austin, Texas, as several people have received invitations to participate and take rides.

Tesla first launched the Robotaxi platform on June 22. It invited a handful of people to participate in the first-ever public rides. We were lucky enough to get an invitation, and our permissions have been expanded in the Bay Area pilot program as well.

The group was small and consisted of big names in the Tesla community. It expanded and is continuing to offer these exclusive invitations to notable members of the Tesla community.

There have been fewer than five subsequent invitations after the first group’s were sent in late June:

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

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Tesla’s new Robotaxi geofence shape is an FU by Elon Musk to the competition

“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.

Eventually, the Robotaxi platform will not require an invite, and it will operate without geofences. Musk believes Tesla can get there within three or six months, and plans to have at least half of the U.S. population with access to a Robotaxi by the end of the year:

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“I think we will probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year. That’s at least our goal, subject to regulatory approvals. I think we will technically be able to do it. Assuming we have regulatory approvals, it’s probably addressing half the population of the U.S. by the end of the year.”

Tesla plans to have regulatory approval in Nevada, Arizona, and Florida sooner than in other states.

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