Ford in Europe has chosen its plant in Valencia, Spain, as the preferred site to assemble vehicles based on a next-generation electric vehicle architecture. Pending product approval, the Valencia plant could produce the electric and connected vehicles beginning later this decade.

Ford is also moving forward with a $2-billion conversion of its Cologne, Germany, operations to begin producing electric passenger vehicles starting in 2023. Ford’s European strategy calls for a line-up of electric vehicles, including an electric version of the popular Ford Puma and extending its leadership in the commercial segment with electric Ford Pro vehicles and connected services. By 2026, Ford in Europe plans to sell 600,000 electric vehicles annually.

Continent-wide electric vehicle sales continue to grow rapidly (up 65% to 2.3 million in 2021) and the European Parliament voted earlier this month to set new CO2 targets for light-duty vehicles, including a requirement that new sales be 100% zero emission vehicles by 2035.

The decision on Valencia followed the conclusion of comprehensive consultations with teams in Valencia, Spain and Saarlouis, Germany. Ford’s plant in Saarlouis will continue to produce the Ford Focus passenger car, while the company is also evaluating options for future site concepts.

Ford also reiterated its commitment to Germany as the headquarters of its European Model e business and the site of its first domestic European electric vehicle production. The Cologne Electrification Center will start production in late 2023.

Ford’s plans for all-electric future in Europe supports the global goal of 2 million+ annual production of EVs by 2026 and 10% company adjusted EBIT margin by 2026.