Turkey-based Ford Otosan announced a €1.4bn ($1.87mn) investment over the next five years and plans to produce the next model of its Transit van for the European market in Turkey in 2023. The lines will include electric, hybrid, and combustion-engined designs.
Ford Otosan is a joint venture between the US’s Ford and Turkey’s Koc Holdings. The JV will also manufacture a 1mt commercial vehicle for Volkswagen AG as part of an alliance with Ford.
In North America, Ford is moving a previously planned $900mn investment from Cleveland, Ohio to Mexico. The plant’s expansion in Ohio was made during the 2019 contract negotiations. The Avon Lake plant produces Ford E-series vans and Super Duty pickup trucks and was slated for a yet-unnamed product line.
The site will receive some investments and increase the production of trucks but will not manufacture any new lines. Some media reports point to the building of electric vehicles. Ford is expected to launch production of the electric vehicles in the Mexico plant in mid-2023 under the Ford and Lincoln brands.
It is still unknown whether Ford will establish an alliance with a production plant in Mexico or develop a new plant on its own. The additional vehicle production in Mexico will grow the country’s consumption of ferrous scrap. There is speculation that some of the flat products may be sourced from SDI’s Sinton Texas Flat Rolled mill.
($1=TRY7.5)