BERLIN— Ford Motor Co. said it would invest $1 billion in a German factory as part of a plan to phase out gas-powered cars in Europe by 2030, the latest auto maker to embrace a shift to electric vehicles.
Ford said Wednesday that it will convert its plant in Cologne to produce electrics, including the company’s first European-built all-electric passenger car in 2023. By 2030, electric vehicles should account for all its passenger-car sales in Europe, along with two-thirds of its commercial vans and trucks, the company said.
Most of the car industry’s well-known brands have dramatically increased investment into electric vehicles as the broader automotive industry begins in earnest to phase out traditional engines and shift almost entirely to electric vehicles and hybrids over the next decade.
“Our announcement today to transform our Cologne facility… is one of the most significant Ford has made in over a generation. It underlines our commitment to Europe and a modern future with electric vehicles at the heart of our strategy for growth,” Stuart Rowley, president of Ford’s European business, said.
General Motors Co. said last month that it would phase out production of gasoline-powered vehicles by 2035, echoing similar plans by Volkswagen AG , Europe’s biggest automotive producer.