Fords Bid to Fight Back
Ford’s Bid to Fight Back
In a bid to regain its sales in Europe, manufacturer Ford has released many new models, including the new versions of Fiesta, Mondeo and Kuga, and the most exciting will be the launch of Mustang; yes the right hand version aimed at the UK market is expected to be released very soon. This all comes after a warning that Ford might have to bear £630m loss this year.
Stephen Odell the chief executive of Ford Europe is hopeful that the European car market has a great growth potential, “While others are backing off or cutting product investments, we at Ford are accelerating the introduction of new products”. The Ford’s two year plan includes a redesign of its best-selling Fiesta with many high tech features and a new shape, a new Mondeo, sports versions of Kuga and other vehicles, design changes in commercial vehicles and introducing latest technologies like more economical engines, inflatable seats and driver aid features.
Ford has suffered loss in stock market as well. The share price has plummeted to $9 in the spring from $13, which shows the problems it has been facing. The European sales of the company have fallen to 10% during the first half of 2012, while its rivals showed an increase in the same period, Hyundai up 12% and Kia’s sales were up by 25%. In fact, during April to June period, North America was the only market where Ford performed well. However, Ford is expecting the European and Russian market to expand 20% in the next five years. “Even with the near-term business environment, Europe presents a significant opportunity for profitable growth. Today, we are accelerating the introduction of our new products in Europe”, said Alan Mulally, the boss of Ford.
Ford might be facing all these difficulties but still Ford Fiesta is the UK’s number one selling car, announced by of Motor Manufacturers and Traders, guess what Focus is right there at the third number on the most popular list. German consulting firm Roland Berger predicts that up to 10 car factories may have to close down in Western Europe, due to under capacity production, Ford and Volkswagen will be the only ones to survive. Ford is hoping that the string of new models will help it go through the slump. It is optimistic to make Fiesta the world’s number one selling car, leaving behind Toyota Corolla. Another announcement by Ford is to export its Indian built engines to Europe. It hopes to increase its two Indian plants capacity to 600,000 Ford engines.
