Then Ford CEO Alan Mulally in Valencia in 2011.
Ford in Europe today announced that it 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 electric and connected vehicles beginning later this decade.
In the problematic world of labor relations, Ford is also moving ahead on the $2 billion conversion of its Cologne, Germany, operations to begin producing electric passenger vehicles starting in 2023. Continent-wide electric vehicle sales continue to grow rapidly (up 65% to 2.3 million in 2021*). Continue reading
Automaker Profits Post-Covid Hiding Supplier Weakness
Supply constraints and demand that have made vehicle prices higher at lower volumes are creating operational inefficiencies and distress in the supply chain, according to new industry-wide analysis from AlixPartners LLP*, the global consulting firm. This imbalance will continue through 2024 as chip availability continues to improve.
The continued trend delivers a “complex backdrop for an industry committing $526 billion through 2026,” AlixPartners’ analysis finds, to fund the shift to battery-electric vehicles (BEVs). The transition, now taking place amid a weakening economic outlook, could cost automakers and suppliers $70 billion if not effectively managed. There are also several implications for dealers and consumers here – not all of them benign.
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