Ford’s Sales in Europe Are Declining Sharply, and the Reason Is Obvious.

People still want cars, but unfortunately, Ford is discontinuing all of them

It’s been just over a year since Ford stopped producing the Fiesta, and I still can’t believe higher-ups thought it was a good idea. The Fiesta’s discontinuation was another blow to those who still want cars. In 2022, the Mondeo met the same fate, and the Ka city car was discontinued in 2019. The sales numbers clearly reflect that the shift towards crossovers isn’t working out.

According to data from the European Automobile Manufacturers’ Association (ACEA), Ford’s performance this year has been poor. Demand in the European Union, European Free Trade Association, and the UK has dropped by 16.9 percent, with only 226,365 cars sold. This data covers 27 EU countries, along with four in the EFTA, while the UK is counted separately since leaving the EU in early 2020.

Ford’s market share in the EU+EFTA+UK region fell from 4.1 percent to just 3.3 percent by June, which comes as no surprise. The discontinuation of the Fiesta undoubtedly hurt sales. According to automotive research firm Dataforce, as reported by Automotive News Europe, every model except one in the top 10 of the small car segment saw an increase in the first half of 2024. Most of these models experienced double-digit growth.

Overall, the segment grew by 5.7 percent, reaching 956,865 superminis—an increase of 51,392 cars compared to the first half of 2023, despite the Fiesta’s discontinuation. With Ford’s small hatchback no longer available, customers opted for other models, and then some.

Another challenge is on the horizon: Ford is preparing to discontinue the Focus as well. The decision, announced in mid-2022, revealed that the compact car would be phased out in 2025. Just a few months ago, the company confirmed its plan to end production of the Volkswagen Golf competitor in November 2025 at the Saarlouis plant in Germany.

Looking at the sales charts again, the decision to eliminate the Focus from the lineup seems like a repeat of the Fiesta’s story. The compact segment grew by 11.5 percent in the January-June 2024 period across the EU+EFTA+UK region, adding 86,161 more cars for a total of 837,351. While the Focus saw a decline of 19.8 percent, production was temporarily halted due to a factory strike. Despite this setback, Ford still ranked fifth in the segment, with 47,070 cars sold, ahead of its long-time rival, the Opel/Vauxhall Astra.

Once the Focus is discontinued, the Mustang will be the only car left in Ford’s European lineup. While the iconic pony car is beloved, the sports coupe/convertible duo won’t significantly impact sales. It’s a niche vehicle with a large V-8 engine, which will likely deter buyers due to the high taxes on large-displacement engines in many European countries. Through June, Ford sold just 1,323 Mustangs, a drop of 26.6 percent, though the seventh-generation model is only now being released.

Even though it’s a smaller segment, the mid-size category—where the Mondeo (Fusion in the United States) used to be until a few years ago—also saw growth in the first half of 2024. Demand increased by 6.6 percent, adding 11,004 more units for a total of 178,679 cars compared to the same period last year.

Ford has no plans to directly replace the Fiesta, Focus, or Mondeo. Instead, the company is introducing an electric Explorer large SUV and reviving the Capri nameplate as an electric SUV. Both vehicles are built on Volkswagen Group’s MEB platform, making them related to the ID.4 and ID.5. However, it’s unrealistic for Ford to expect these electric models to make up for the loss of long-established names like the Fiesta, Focus, and Mondeo.

In the first half of 2024, fully electric cars captured only 12.5 percent of the market, according to ACEA data. Ford is also developing an all-electric Puma, which will be its most affordable EV offering in Europe. The Puma Gen-E is set to debut later this year, but it will face strong competition from Stellantis. Notably, Ford has scaled back its goal of going fully electric in Europe by 2030, citing weaker-than-expected demand for EVs.

The drop in sales underscores a critical point: there’s a limit to the number of crossover buyers. The Fiesta, Focus, and Mondeo segments continue to see strong sales in Europe, but Ford is now sitting on the sidelines, focusing on SUVs and the occasional Mustang.

Ford hasn’t just discontinued its cars in Europe; it has also done so in the United States. The Fiesta, Focus, Fusion, and Taurus have been out of production for years as the company shifted its focus to larger crossovers and trucks. Yet, CEO Jim Farley recently suggested that Americans need to embrace smaller cars—the very models Ford no longer offers.

In a June interview with CNBC at the Aspen Ideas Festival, Farley remarked, “We have to start falling back in love with smaller vehicles. They’re crucial for our society and for EV adoption. We’re currently enamored with these large vehicles, and while I love them too, their weight is a significant issue.”

For now, this statement shouldn’t be seen as a commitment from Ford to reintroduce smaller cars. The American market remains heavily truck-focused. However, the situation is different in Europe, where smaller cars are more popular. With the EU set to ban new gas and diesel cars by 2035, reviving models like the Fiesta or Mondeo may be too late.

As the Focus nears its end, Ford faces a challenging future in Europe, especially as competitors continue to offer regular cars. Adding to the difficulty, EV growth in Europe is slowing, with ACEA data showing only a 1.3 percent increase in electric cars through June. This suggests that Ford’s electric models, including the Puma, Explorer, and Capri, might not perform as well as initially hoped.

The silver lining for Ford in Europe is the continued success of the non-American Puma subcompact crossover, which is still selling exceptionally well. Deliveries increased by 8.4 percent, reaching 83,668 units in the first half of 2024. However, the larger Kuga (known as the Escape in the US) saw a decline of 10.1 percent, with sales totaling 54,995 vehicles.

Ford’s shift toward focusing on crossovers and EVs doesn’t appear to be paying off, especially when compared to the performance of rival companies in Europe. It’s disheartening to see classic Ford models being phased out to make way for more expensive, VW-derived products.

Author:

  • Growing up with a father who was a mechanic I had an appreciation for cars and motorcycles from an early age. I shared my first bike with my brother that had little more than a 40cc engine but it opened up a world of excitement for me, I was hooked. As I grew older I progressed onto bigger bikes and...

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