Ford has been calling for more robust EV government incentives for some time now, which is believes are necessary if places like Europe and the UK want to meet their stair-step zero-emissions goals in the coming years. The UK recently announced that it would be doing precisely that (along with providing some other forms of relief for automakers), but in Germany, Ford EV sales have been lagging as well – resulting in a massive $5 billion dollar infusion from the automaker. Now, it seems as if Germany may be following the UK’s lead very soon.
According to Reuters, Germany’s new leadership is pledging its support for the fledgling automotive industry in that country, which is outlined in a document on the coalition agreement recently seen by sources. That document notes that Germany plans to roll out incentives for the purchase of EVs, plug-in hybrids, and extended-range electric vehicles (EREVs), and it will provide tax incentives for automakers that sell those vehicles in the country up until 2035.
Germany is also looking to cut back on emissions fines issued to automakers, after the country already loosed its targets in that regard when those companies warned that such fines would take money away from their EV development efforts. This is certainly good news for Ford, which has struggled mightily in Europe recently, a region where its sales declined by 17 percent in 2024 versus the year prior. Facing a bleak future in Europe amid weak Ford EV sales and passenger vehicle demand in general, The Blue Oval is shuffling its leadership team and shifting its focus more toward the commercial side of the business, which is enjoying tremendous success there.
As part of its previously-planned EV shift, Ford is preparing to close the Saarlouis Assembly plant in Germany and end production of the Focus later this year. However, with demand for all-electric vehicles proving to be weaker than expected, the automaker will continue to sell ICE and hybrid vehicles for the foreseeable future, and has also cut production of the Explorer and Capri EV models at the Ford EV plant in Cologne, Germany.
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