Ford will make big enough reductions to CO2 levels across the models it sells in Europe to avoid paying fines under tough new European Union emissions targets that started this year, the company has said.
Ford will roll out 14 new electrified vehicles models this year as part of plan to achieve the target, said Ford's global automotive head, Joe Hinrichs.
"Our plan is definitely product driven. We do not expect to incur any fines, [or] have to pool with anybody else, or purchase credits," Hinrichs, told analysts on an earnings call on Tuesday.
Ford needs to hit a CO2 target of 96.6 grams per km in 2021, down from a 2018 figure of 122.7g/km, according to an analysis from PA Consulting.
The automaker's new electrified vehicles include mild hybrids, full hybrids and plug-in hybrids.
The automaker will also start selling the Mach E full-electric SUV by the end of the year.
The new Kuga compact SUV, which goes on sale early this year, has the widest range of electrified options, including plug-in-hybrid, full-hybrid and mild-hybrid versions.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
Ford's European business made a profit of $21 million in the fourth quarter, compared to a $199 million loss in the same period a year ago, as it restructures its operations in Europe and Russia.
Ford lost $47 million in Europe in 2019, which represented a $351 improvement on the year before. The company booked a $1.2 billion charge for restructuring Europe as it implemented a plan to cut 12,000 jobs and close or sell six manufacturing plants.
The plant closures include an engine factory in Bridgend, South Wales; a gearbox factory in Bordeaux, France; and three facilities in Russia. Ford is also selling a transmission plant in Slovakia to Magna International.
The restructuring in the region was badly needed, CEO Jim Hackett told analysts on the earnings call. "Europe hadn't been touched for years," he said.
Ford has also axed low-margin or slow-selling models in the region such as the Ka+ minicar, and the C-Max and B-Max minivans.
Ford's concentration on higher-margin sales in Europe paid off as revenue fell less than volume over the quarter, Chief Financial Officer Tim Stone said.
Revenue in Europe fell by 1 percent, excluding the negative impact of exchange rates, Stone said. Including the exchange rate impact, revenue fell 4 percent.
