Ford dealerships across Europe can expect to see renewed focus from the brand on competitive new cars in the future.
Jim Farley, Ford’s chief executive and the leader who in 2016 drove Ford’s European operations to record profitability, record margins and increased sales while he was then execitive vice president of Ford Europe, has reportedly told its major franchisees that he is keen to restart development of new cars tailored to Europe’s customers.
Strong consumer demand for stylish SUVs, which typically also had better margins for manufacturers than saloons and hatchbacks, plus the need to secure profitability and efficiency through global products, combined to lead Ford to cull its B-segment Fiesta, once the UK’s biggest-selling new car, and other models such as Mondeo and S-Max.
Ford dealerships across Europe can expect to see renewed focus from the brand on competitive new cars in the future.
Jim Farley, Ford’s chief executive and the leader who in 2016 drove Ford’s European operations to record profitability, record margins and increased sales while he was then execitive vice president of Ford Europe, has reportedly told its major franchisees that he is keen to restart development of new cars tailored to Europe’s customers.
Strong consumer demand for stylish SUVs, which typically also had better margins for manufacturers than saloons and hatchbacks, plus the need to secure profitability and efficiency through global products, combined to lead Ford to cull its B-segment Fiesta, once the UK’s biggest-selling new car, and other models such as Mondeo and S-Max.
Ford is also playing catch-up in the electric vehicle market, where Volkswagen, Tesla, Cupra, Skoda, Hyundai and Kia have won considerable market share.
Its recent EV launches, the Explorer and Capri, both built on Volkswagen’s MEB platform, are still finding their place but are under considerable pressure from Chinese brand rivals such as BYD and Omoda who are targeting fleets.
In 2024 Ford’s UK new car market share dropped to 5.6%, with 110,000 registrations, which is just a third of its car sales volume a decade ago.
Putting that into context, it sold 133,434 Fiestas alone in 2015.
The decline in new car sales has led Ford to downsize its dealer network. In the UK it culled its retail dealers, and its network of FordStores, many of which represented multi-million pound investments for franchisees less than a decade ago, has also reduced.
Its strength in commercial vehicle sales has been its success story, however, with the 115-site Transit Centre network in the UK continuing to lead the market.
In 2024 Ford achieved almost 113,000 new light commercial vehicle registrations, plus 3,375 heavy van registrations. That is ahead of a decade ago – it achieved 106,000 in 2015.
Some of its remaining Ford car dealerships are now sharing locations, even rooftops, with other brands including the ambitious Chinese new entrants.
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