Europe’s changing regulatory landscape prompting automakers to go all-electric
Amid a changing regulatory landscape, a growing number of automakers are accelerating their shift from conventional internal combustion engines (ICEs) to EVs. Following the footsteps of Jaguar, Ford has also declared that the company will sell only electric vehicles (EVs) in Europe by 2030.
The American auto giant’s all-electric commitment will follow a phased-in approach that will start with the launch of its first ‘made in Europe’ electric passenger vehicle in 2023. The auto giant also announced that 100 per cent of its passenger vehicle lineup in Europe will be zero-emissions capable, all-electric or plug-in hybrid by the mid of 2026, before eventually going full-electric in 2030. The commercial vehicles of the company will be zero-emissions capable as early as 2024.
The change will come with huge investments automobile majors have planned to improve their vehicle lineup. Ford has set aside $1 billion to inject into its Cologne assembly plant to transform the facility into “Ford Cologne Electrification Center,” which will be dedicated to making EVs in the future. Ford’s announcement to go all-electric in Europe by the end of current decade followed its previous announcement that it would double its investment in EVs to $22 billion. The company has also allocated additional $7 billion for autonomous (self-driving) vehicles.
Earlier, Jaguar Land Rover’s luxury Jaguar brand, which is owned by India’s Tata Motors, announced plans to go entirely electric by 2025 and sell only e-models of its entire lineup by the end of current decade. The company will invest nearly 2.5 billion pounds (US$3.5 billion) per annum on the electrification process.
Showing its commitment to electrification, General Motors (GM) has also set aside $27 billion to launch 30 different models of EVs by the end of 2025, dropping a strong hint that the auto industry is rapidly going electric.
More and more automakers are announcing their plans to go all-electric as European authorities are tightening carbon emission rules and regulations. As per latest rules, cars sold in Europe by 2030 will be required to achieve a 37.5 per cent reduction in CO2 emissions from the levels recorded in 2021. The UK has declared that there will be a total ban on fossil-fuel vehicles by the end of 2030.
Obviously, these stringent European carbon emission rules mean that all car manufacturers will have to turn to electrification comply with the rules and regulations, and avoid potential hefty fines.