COLOGNE, Germany, Oct. 25, 2022 – Ford in Europe today announced further steps to secure supply of low carbon steel for its future products and help reach its carbon neutrality target by 2035. The company is entering Memorandum of Understandings (MoUs) with Salzgitter Flachstahl GmbH, Tata Steel Nederland B.V. and ThyssenKrupp Steel Europe AG to secure supply of low carbon steel.
The three strategic suppliers to Ford have individual plans to increase the production of low carbon steel in the coming years. Based on the strong relationships with these partners Ford will significantly improve the CO2 footprint of its supply chain, with steel production being a key component. As a first application Ford plans to use the low-CO2 steel for the production of its all-new, all-electric, medium-sized crossover vehicle, starting in 2023.
The reduction of CO2 emissions in the supply chain is a key element in Ford’s plan to target carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035. To reach this ambitious goal, Ford is analysing the whole value chain to produce highly efficient vehicles. Major updates to the Cologne Electrification Centre production facility, with new energy efficient solutions, will save more than 2,000 tonnes of CO2 and more than 2,600 MWh of electric energy per year.
The initiative will also contribute to the company’s commitment to a 10 per cent use of carbon neutral steel by 2030 from earlier this year, announced when Ford joined the First Movers Coalition, a global initiative by the World Economic Forum to harness purchasing power and supply chains to create early markets for innovative clean energy technologies.
The steel companies will use green hydrogen and renewable energies in new production processes to gradually reduce their CO2 footprint in steel production. In this way, they will contribute to the European Green Deal to achieve zero net emissions in all sectors by 2050.
“Our customers, like us, want to take care of our planet, and we are taking the necessary steps on this journey, providing the vehicles they need to make a positive contribution against climate change, produced in a more sustainable way,” said Sue Slaughter, purchasing director, supply chain sustainability, Ford Motor Company. “Improvements within our supply chain are key, and with the use of carbon neutral steel we will take a major step towards lowering the CO2 footprint of our vehicles.”
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, that is committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for and deepen the loyalty of those customers. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, as well as connected services. Additionally, Ford is establishing leadership positions in mobility solutions, including self-driving technology, and provides financial services through Ford Motor Credit Company. Ford employs about 182,000 people worldwide. More information about the company, its products and Ford Credit is available at corporate.ford.com.
Ford of Europe is responsible for producing, selling and servicing Ford brand vehicles in 50 individual markets and employs approximately 35,000 employees at its wholly owned facilities and consolidated joint ventures and approximately 54,000 people when unconsolidated businesses are included. In addition to Ford Motor Credit Company, Ford Europe operations include Ford Customer Service Division and 14 manufacturing facilities (eight wholly owned facilities and six unconsolidated joint venture facilities). The first Ford cars were shipped to Europe in 1903 – the same year Ford Motor Company was founded. European production started in 1911.
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