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Home Tech Automobiles

Ford’s European Sales Drop Sharply, Here’s the Reason

by Samir Gautam
August 9, 2024
in Automobiles, Cars
Reading Time: 2 mins read
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Ford Cuts Stock Bonuses for Middle Managers Amid Cost-Cutting Drive

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Despite the enduring demand for cars, Ford’s recent decisions have left many scratching their heads. The demise of the Fiesta, followed by the Mondeo and the Ka city car, has been a series of blows to those who still appreciate traditional automobiles. Unfortunately for Ford, the shift toward crossovers hasn’t yielded the expected results.

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The Fiesta’s Farewell

The discontinuation of the Fiesta dealt a significant blow to Ford’s sales. According to figures from the European Automobile Manufacturers’ Association (ACEA), demand for Ford vehicles in the European Union, European Free Trade Association (EFTA), and the UK plummeted by 16.9 percent, resulting in just 226,365 cars sold. Ford’s market share in this region dropped from 4.1 percent to a mere 3.3 percent during the first half of 2024.

There are no immediate plans to replace the Focus, Mondeo, or Fiesta. Rather, Ford is reintroducing the Capri as an electric SUV and introducing the electric Explorer big SUV. The two are connected to the ID.4 and ID.5, respectively, since they are built on the VW Group’s MEB platform. It is unrealistic for Ford to anticipate that the two electric vehicles would make up for the loss of venerable names like Fiesta, Focus, and Mondeo.

Interestingly, despite the Fiesta’s cancellation, the small car segment saw growth. Automotive research specialist Dataforce reported that nearly all models in the top 10 superminis category experienced an increase in sales during the same period. Customers shifted their preferences, opting for alternatives like the Dacia Sandero, Renault Clio, and Citroen C3.

Here’s how some of the small car models fared:

  • Dacia Sandero: Up 17.2 percent
  • Renault Clio: Up 14.6 percent
  • Peugeot 208: Up 1.1 percent
  • Citroen C3: Up 52.8 percent

The Focus Faces a Similar Fate

Ford’s decision to phase out the Focus mirrors the Fiesta story. Although the compact segment grew by 11.5 percent in the EU+EFTA+UK region during the first half of 2024, the Focus struggled. Production disruptions due to a factory strike impacted its sales. Nevertheless, Ford managed to secure fifth place in this segment, surpassing long-time rival Opel/Vauxhall Astra.

Here’s how some of the compact car models performed:

  • Volkswagen Golf: Up 42.4 percent
  • Skoda Octavia: Up 25.8 percent
  • Toyota Corolla: Up 13.9 percent
  • Peugeot 308: Down 2.1 percent
  • Ford Focus: Down 19.8 percent

Ford’s market share challenges persist, and the decision to focus on crossovers may need reevaluation. As the automotive landscape evolves, Ford faces tough choices in balancing tradition with market trends.

According to ACEA data, the market share of fully electric automobiles was just 12.5% in the first half of 2024. As its least expensive EV available in Europe, Ford is also developing an all-electric Puma. Later this year, the Puma Gen-E will make its appearance, and Stellantis will be a fierce rival. To refresh your memory, Ford has backed off from its goal of having 100% EVs in Europe by 2030, citing “softer” demand than anticipated.

Tags: EuropeFord MotorsFORD SALES
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