American carmaker Ford Motor Co. (F) has announced that it would begin manufacturing electric car parts in Europe at a cost of $315 million as it makes the move from traditional internal combustion engines to the electric zero emission vehicles.
The company said that it would be converting its Halewood transmission factory located in northern England into a factory building electric power units for both passenger and commercial electric vehicles meant for the European market.
The Halewood plant is expected to begin production of electric parts by the middle of 2024 and Ford expects to produce around 250,000 electric parts at the site every year.
The company said that the Halewood investment is inclusive of U.K government aid to the tune of 30 million pounds through its Automotive Transformation Fund. Following the investment, the company will give employment to 500 people at the factory.
Last year, the U.K. government had set up a 500 million fund to influence electric vehicle manufacturers and battery makers to expand their businesses in the U.K. The British Government wanted the sales of new petrol and diesel cars in the country to stop completely b 2030.
Commenting on the developments, Stuart Rowley, president of Ford Europe, said, “This is an important step, marking Ford’s first in-house investment in all-electric vehicle component manufacturing in Europe. It strengthens further our ability to deliver 100% of Ford passenger vehicles in Europe being all-electric and two-thirds of our commercial vehicle sales being all-electric or plug-in hybrid by 2030.”
Ford company’s announcement comes in the backdrop of many automakers changing to electric vehicles under increasing pressure by governments and regulators to bring down harmful gas to stop the ill-effects of climate change.
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