The European Bank for Reconstruction and Development (EBRD) has said that it is supporting the production of a range of next generation all-electric and plug-in hybrid variants of one-ton commercial vehicles for the European market by arranging a €650 million loan to Ford Otosan, Europe’s leading commercial vehicle manufacturer and US automaker Ford’s joint venture with Turkey’s Koc Holding.
The financing, shared by the EBRD and commercial lenders, is part of the Bank’s drive to fund the green transition and supports Ford’s aim of leading the electrification of the automotive industry for a climate-friendly, more sustainable future. The financial package consists of a €175 million loan for the EBRD’s own account and €475 million in debt syndicated to other.
EBRD pointed out that electric vehicles (EVs) are seen as key to the future of transport, as more and more governments move to decarbonise the industry to speed up reductions in greenhouse gas emissions and combat climate change.
The new one-ton Ford Transit Custom will be launched in the first half of 2023. The battery-powered EVs and plug-in hybrid variants will substantially reduce harmful emissions, promoting a more climate-friendly transport option.
Ford Otosan plans to spend TRY 20.5 billion (€ 2 billion equivalent) on next-generation commercial vehicle production through 2026, backed by Turkish state incentives. The company is set to become Ford’s global hub for the production of commercial EVs and create 3,000 new jobs in the coming years.