Ford plans to expand production in the UK
The American automobile manufacturer Ford is increasing its investment in electric vehicles. It allocated 150 million pounds to increase production capacity in the UK, where it produces parts for electric cars. Such a decision of the corporation will positively influence the automobile sector of the United Kingdom, which is experiencing difficulties.
Investments will be used for the expansion of the plant in Halewood. According to the project, its capacity should increase by 70%, thus the enterprise will be able to produce about 420 thousand sets of elements for electric cars annually. This unit includes an electric motor and gearbox.
Increasing production capacity in Halewood is part of the corporation’s strategy to increase the production of electric vehicles. Ford plans to increase sales to 600,000 units in Europe alone by 2026. For this purpose, in 2021, the plant in the vicinity of Liverpool, where the transmissions are made, was modernized
Last fall, Ford struck a deal with Tata Motors Corporation. According to its terms, the American automobile manufacturer will sell its assembly plant in India for $91 million. The decision to sell was the result of a long process of conquering the Indian market, which ended in failure for Ford. The fact is that the car concern has a share of only 2% in the country, although it has been present here for about 20 years. The low profitability and hopelessness of its increase have forced the manufacturer to leave India. In turn, the new plant will allow Tata Corporation to increase the annual production of cars by 300 thousand units.
At the same time, Ford still manages the production facilities for power units in India.
The American automobile manufacturer occupies 4th place in the world market in terms of production volumes. Ford was founded in 1903 by Henry Ford. The company has revolutionized its sector, it was the first, wherein 1913 established line production of cars. Thus cars became more affordable, their cost was reduced by more than 3 times
The company managed to survive the periods of the First and Second World Wars, and the Great Depression, but in the 1970s, its position in the U.S. market began to decline rapidly due to the increasing popularity of cars manufactured in Japan. Then Ford acquired a part of the shares of the companies Mazda and Kia and also increased the production of products in the territory of Mexico. Thus the business managed to avoid the crisis and considerably increase the proceeds.
In the 2000s the company faced serious financial problems after the recall of more than 300 thousand cars because of poor-quality tires. Thanks to a new strategy, business restructuring, and the sale of a number of car brands, the automaker was able to return to profitability. This allowed the company to launch its electric transport business, investments in which are steadily increasing.
