In an effort to make South American and European markets more profitable, Ford has plans in the works around a huge reconstruction of the company’s model lineup come the new century. It’s being reported that close to all of its current cars available in America will be switched up with either sports utility vehicles (SUVs) or crossovers, with exceptions being the Ford Active and of course, the Mustang. Ford is also re-thinking the entire concept of the car in general, as these big changes make their way.
Bill Ford Jr., the company’s executive chairmen recently stated there would be ‘fairly large’ changes within the European and South American areas, with the brand wanting to cut down on expenses in these divisions and return to a profitable margin.
Rumors are swirling around these changes at Ford, with one suggesting that the brand could ax the Mondeo model in Europe. The vehicle is supposed to get a refresh later on in 2018; however, a brand-new generation of the car hasn’t been confirmed. Moreover, the Fusion continues to be a core part of Ford’s European lineup, but it too may also be replaced by an SUV option.
Motor1 reported that if you look at Ford’s profitability on this continent, it is clear that a change is needed. While operations in terms of employee numbers are big, profits are not. In 2017, the brand’s pre-tax profit in Europe as at $234 million, versus the close to $7.5 billion in the U.S; this despite selling a total of 1.56 million LCVs and cars last year (including Turkey and Russia).
Ford has pointed to the decrease of the pound in their largest market on this continent, Great Britain, which axed about $600 million from overall profits. The pricey European launch of Ford’s all-new Fiesta was also a factor around the company’s weak 2017 numbers.Advertisement