The company wants to make Europe and South America highly-profitable markets.
Ford is planning the biggest reconstruction of its model lineup in the new century – nearly all cars will be replaced by SUVs and crossovers in the United States, except for the Mustang and the new Focus Active. The Blue oval automaker says it is rethinking the idea of the car entirely and in fact has more big revisions coming.
Ford’s Executive Chairman, Bill Ford Jr., has recently announced “fairly large” changes should be expected from the company’s South American and European divisions. The auto giant wants to return to profitability in these two regions and plans to cut costs significantly.
"It could be regions, it could be functions, it could be areas of emphasis," Bill Ford is quoted by Automotive News. "We’ve done some big things, and we still have some big things to do."
As far as Ford’s European range is concerned, rumors suggest the manufacturer could kill the Mondeo flagship car on the continent. The model is due to receive a mid-life refresh later this year, but a brand new generation hasn’t been confirmed so far. While the European brother of the Fusion “remains a core part” of the brand’s portfolio, it could eventually be replaced by a more profitable SUV offering.
Ford’s operations on the Old continent are huge when measured by the number of employees, but the same can’t be said for its profits. Last year, Ford’s pre-tax profit in Europe was $234 compared to the nearly $7.5 billion in the United States.
Despite selling a total of 1.56 million cars and LCVs on the continent in 2017 (including Russia and Turkey), Ford is still registering disappointing financial results in the region. The company points to the decline of the pound in the marque’s largest European market, Great Britain, which wiped approximately $600 million from its profits. The expensive launch of the all-new Fiesta for Europe is also seen as a major reason for the weak profits last year.
Note: Euro-spec Ford Mondeo Vignale pictured at the top.