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Ford Europe To Electrifying Every Model From All-New Focus On
New all-electric vehicles and electrified options to be offered for all models
Ford intends to conduct deep restructurization of its entire business in Europe. The focus is on strengthening competitiveness and profitability of the company.
The important part of the plan for the future is broad electrification, which will concern every new model, including the all-new Ford Focus. We appreciate that the entire portfolio will be electrified, but it’s hard to say how many models will go all-electric and plug-in hybrid.
“Every Ford nameplate from the all-new Ford Focus onwards will include an electrified option. This includes new nameplates and new versions of existing vehicles. From Fiesta to Transit, either a mild-hybrid, full-hybrid, plug-in hybrid or full battery electric option will be offered, delivering one of the most encompassing line-ups of electrified options for European customers.”
More Ford news
One of pillarz of the three-pronged strategy in Europe is import – Ford re-announced the all-new Mustang-inspired full-electric performance utility in 2020. Debut of this particular model is scheduled for April 2019.
“Imported Vehicles: A niche portfolio of imported iconic nameplates for Europe that builds on the heritage of the Ford brand will include Mustang, Edge, and another SUV to be revealed in April, along with an all-new Mustang-inspired full-electric performance utility in 2020.”
Ford Motor Company CEO, Jim Hackett said (see video below) that new lineup of electric vehicles is coming, including F-150 and Mustang. Hopefully, we will see those on the market soon.
Full press release:
Ford to Strengthen European Competitive Position and Profitability; Sets Vision for the Future
- New strategy targets near-term profitability and a more competitive business for the future
- Near-term actions underway to improve profitability and reduce structural costs, with parallel redesign to include a more targeted vehicle line up within three customer-focused business groups – Commercial Vehicles, Passenger Vehicles and Imports
- New all-electric vehicles and electrified options to be offered for all models
- Leveraging relationships, including a potential alliance with Volkswagen AG, to support commercial vehicle growth
- Ford to improve or exit less profitable vehicle lines and address underperforming markets; also undertaking a strategic review of Ford Sollers, the company’s joint venture in Russia
COLOGNE, Germany, Jan. 10, 2019 – Ford is starting consultations with its union partners and other key stakeholders to implement a comprehensive transformation strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe.
The strategy – which is part of the company’s broader global vision of providing smart vehicles for a smart world – will offer differentiated vehicles designed to create a deeper connection with Ford customers.
Near term, Ford is accelerating key fitness actions and reducing structural costs. In parallel, the fundamental redesign will include changes to Ford’s vehicle portfolio, expanding offerings and volumes in its most profitable growth vehicle segments, while improving or exiting less profitable vehicle lines and addressing underperforming markets.
“We are taking decisive action to transform the Ford business in Europe,” said Steven Armstrong, group vice president and president, Europe, Middle East and Africa. “We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.”
Ford is entering into formal consultation with its Works Council and trade union partners, and is committed to working together with all key stakeholders to enable the new strategy.
Near-term profitability and cost improvements – reset for 2019 and 2020
To improve near-term financial performance, Ford will drive improvement in profitability across its product portfolio. This improvement will be driven by reducing the complexity of existing Ford products, optimizing the most profitable vehicle configurations, and increasing volumes of profitable vehicle lines.
Structural cost improvements will be supported by reduction of surplus labor across all functions – salaried and hourly. An improvement in management structure, announced in December, already is underway through Ford’s redesign of its global salaried workforce, that will improve the agility of the organization.
Ford aims to achieve the labor cost reductions, as far as possible, through voluntary employee separations in Europe and will be working closely with social partners and other stakeholders to achieve this objective.
Future business redesign
Ford is establishing three customer-focused business groups in Europe – Commercial Vehicles, Passenger Vehicles, and Imports – each with clearly defined aspirations and dedicated organizations. The new operating model will better enable the businesses to make fast decisions centered on customer needs.
Ford of Europe is targeting a 6 percent EBIT margin longer term, with returns in excess of the cost of capital for each business group.
Commercial Vehicles: Ford will continue to enhance its commercial vehicle leadership in Europe with a tightly integrated offering of smart vehicles, services and partnerships that deliver lifetime value for commercial customers. Already highly profitable, Ford is Europe’s No. 1 commercial vehicle brand in terms of sales volume, and more than one in four Ford vehicles sold today in Europe is a commercial vehicle.
In line with Ford’s global fitness approach to build, partner or buy, Ford of Europe will leverage relationships – such as the successful Ford Otosan joint venture and the potential alliance with Volkswagen AG – to support its commercial vehicle growth.
Passenger Vehicles: Ford will establish a more targeted portfolio of European-built passenger vehicles focused on the quality, technology-rich and fun-to-drive DNA of the Ford brand, with the goal of building emotional connections with customers through sporty and progressive designs.
Every Ford nameplate from the all-new Ford Focus onwards will include an electrified option. This includes new nameplates and new versions of existing vehicles. From Fiesta to Transit, either a mild-hybrid, full-hybrid, plug-in hybrid or full battery electric option will be offered, delivering one of the most encompassing line-ups of electrified options for European customers.
Ford also will build on its success in the growing utility segment in Europe. Ford SUV sales – comprising EcoSport, Kuga and Edge – hit a record high in 2018, surpassing a quarter million vehicles sold for the first time.
Imported Vehicles: A niche portfolio of imported iconic nameplates for Europe that builds on the heritage of the Ford brand will include Mustang, Edge, and another SUV to be revealed in April, along with an all-new Mustang-inspired full-electric performance utility in 2020.
Additional efficiency actions
Ford’s new strategy will result in a more efficient and focused business. Key actions already underway include:
- Production at the Ford Aquitaine Industries plant in Bordeaux, France, which manufactures small automatic transmissions, will end in August 2019.
- Formal discussions have begun between Ford and its Works Council to end production of the C-MAX and Grand C-MAX at the Saarlouis Body and Assembly Plant in Germany as the compact MPV segment shrinks in Europe.
- Ford is undertaking a strategic review of Ford Sollers, its joint venture in Russia. Several significant restructuring options for Ford Sollers are being considered by Ford and its partner, Sollers PJSC. A decision is expected in the second quarter.
- Ford plans to consolidate its UK headquarters and Ford Credit Europe’s headquarters at the Ford Dunton Technical Center in South East Essex to improve business fitness and create a customer-centric technical hub. The action is subject to union consultation and local approvals.
“Working collectively with all stakeholders, our new strategy will enable us to deliver a more focused line up of European-built passenger vehicles, while growing our import and commercial vehicle businesses – for a healthier and more profitable business,” added Armstrong.
Ford will provide specific details of its strategy in the coming months, once appropriate formal consultation with its Works Council and trade union partners has concluded.
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50 Comments on "Ford Europe To Electrifying Every Model From All-New Focus On"
In other words thousands of lay-offs, a shrinking portfolio of vehicles, and general malaise, as Ford attempts to kick start a moribund 20th century company into the 21st.
Yeah, I would add that having a complex and useless range of propulsions (petrol, diesel, mild-hybrid, full-hybrid, plug-in, electric…) isn’t exactly the best way to prepare for the advent of BEVs. A company that still has nearly zero electric offerings should not even think about traditional hybrid, or nonsense mild-hybrid.
I could be wrong, but I think Ford or GM will be the first big automakers to die. Other far behind companies I can think about are FCA, Toyota-Mazda-Subaru and Honda. But I put GM and Ford in first position for a simple reason, which they apparently don’t seem to care about:
They rely heavily on SUVs and trucks, and this will not change as they are both discontinuing many sedans models. This puts them at high risk because
1) the American economy (US is their main market) it’s forecasted to slow down if not to go in recession. So, people will start to slowly move away from the veichles they aim all on, toward more efficient and smaller ones.
2) the advent of electric SUVs of all sizes from Tesla to Europeans to Koreans, and even pickups in the next years, can destroy them anyways.
GM’s “main market” is China. The U.S. only accounts for about 30 percent of GM’s sales.
Ops, didn’t know that… thanks for clarifying. Well, in China I guess they’ll have to speed up a lot, just like everyone else, for example they could sell a lot more of their already existing Baojun E100/E200.
And they are introducing the Velite 6 and a couple other Buick EVs to China.
For the first time in 21 years, China is showing declining carsales in 2018!
They sold around 3million in the U.S. 4.5million in China. 3 million in the rest of the world. Combined just over 10million or so.
“China, the world’s largest auto market, is critical for (GM). It sold over 4 million vehicles in the country last year, even more than it sold in the North Americas market.”
I don’t think Ford can “fail fast.” They are too far behind on too many critical segments of their portfolio so they need whatever hybrid options they can muster. It does seem like they were asleep at the wheel, but maybe something has been happening behind the scenes.
Lacking an all-electric Transit just seems odd to me, but nobody is really making one right now.
Lacking an all-electric transit? They’re cooperating on that with StreetScooter, tho’ no idea why they can’t do it on their own.
If you mean smaller LCVs, lots of companies making them and selling them in Europe.
The issue with all electric Transits is the vehicle weight (MAM, max of 3,500kg) and the minimum cargo capacity (1,000kg, for tax relief for customers). That basically means a BEV Transit can’t have much battery capacity, leading to a short range, to stay within the 2,500kg weight limit that gives for the actual vehicle.
Some EU countries are now trying to work round this problem by allowing drivers of EV commercial vehicles a higher MAM limit without needing an additional driving licence, but that’s only just coming in to force, and only in a couple of isolated countries so far.
Basically a BEV Transit would be a very niche vehicle with current technology and regulations.
Ford certainly aren’t relying heavily on SUV’s and Trucks in Europe. They are very car dominant, with two cars in the top 5 best selling vehicles in the UK (and a small crossover making up the third in the top 10). They’re not dissimilar in the rest of Europe either.
Yes sadly true, I was reading about JLR cutting 4500 jobs in the UK and Ford to cut thousands of jobs across Europe on the UK news channels yesterday. Scary times ahead for some job wise
Better late, than never I guess?
I am curious about the new electric models (not to be confused with plug-in hybrids) – are they going to use a new platform? What kind of vehicles are they?
My guess is the upcoming announcement about the VW alliance will clarify this. I think VWs MEB platform will find it’s way under many new Fords in the coming years.
Isn’t it interesting, all these traditional manufacturers work together on certain bits and pieces, but when Tesla built the Super Charger network none of them were interested (and now at least VW is forced into it in US, and many collaborating on Ionity in EU)?
Over the years it seems like Ford has partnered, or used technology, from just about every other manufacturer.
Include mild hybrid versions, so is quite meaningless.
No no Ford is doing great with electrification – the cars have electric starters and headlights too so quit nitpicking!
Ford….Blaa, Blaaa, Blaaa, Blah, Blah.
Doing the same thing Government Motors is doing.
I was about to say the same. Ford………….whatever….
Electrified means it has a battery. I have Zero confidence that Ford will offer anything above governmental requirements.
Electrified should mean it plugs in. Every car has a battery.
Maybe that’s what it should mean, but it doesn’t. As has been said in one or more comments above, auto makers include even mild hybrids under the umbrella “electrified”.
I really, really hate mild-hybrids. And usually when a company says they are going to “electrify” a lot of vehicles, this is typically where they reach for. Mild hybrids (IE 48V stop/start systems) don’t really offer that much advantage in fuel economy savings over a traditional ICE-only vehicle. But what’s worse is they are annoying. When they stop the engine, it can be jarring sometimes when it restarts. What’s worse is the A/C will stop working too. This is really annoying in hot-climate areas where we depend on our air conditioners. If they are going to make hybrids, they better at least make them real hybrids.
Stop and Go systems will only switch off the engine, when the 12V battery can power all systems in the car. In case of a running AC it will most certainly keep the engine running. At least that’s how it is in most cars that have that kind of technology. But I guess a normal person could survive a few seconds in hot climate without AC in case the engine turns off at a traffic light.
If Ford is still using the term “mild hybrids” they’ve already lost.
“Electrified” is just as bad. Every car I’ve owned had a battery and an electric motor (aka starter). Were they “electrified”?
Where, in the world of electric vehicles, does a mild (or any non plug-in) hybrid become “electrified.” It’s a stupid and inane label that should ONLY apply to plug-in vehicles. If Ford and others think a car run SOLELY on gasoline somehow becomes “electrified,” they evidently have invented a way around the laws of physics.
I call bull-hockey.
It’s called marketing. They use a meaningless term “electrified” so that the uneducated buyers think it somehow equates to an EV. There’s no legal definition of what electrified means, so they use it to mean what they want. Anything where electricity can move the wheels counts in their definition. Verbal sleight of hand.
The cars are “electrified” if there is at least a little propulsion done from an electric motor.
So a standard hybrid with 1.5 KWH battery could drive even a short distance slowly in stop & go traffic just electric. The ‘mild hybrid’ with 48 Volt can at least regenerate some braking energy and support the acceleration a little bit with a few KW E-motor power.
This is already enough to call those vehicles ‘electrified’ — a pure marketing stunt.
Ford has never existed to me.
The huge news here is the announcement of an electric F150.
I don’t consider a comment in the video of ” a lineup of electric vehicles including the F150 and the Mustang” as being a promise that a true F150 EV is on the way. I’m betting it’ll be a PHEV, at least at first.
EV or PHEV is fine…just get SOMETHING out there.
Oh, you mean that mild hybrid F150 and Mustang? Don’t expect much more from Ford.
So….are they saying they’ll make EV versions of ICE cars? A business idea that has been tried and failed by many?
Can anyone name a GREAT EV that is a conversion instead of built from the ground up?
An “electrified” version of all ICE cars, plus some pure EV platforms. They consider mild-hybrid and full hybrid to be electrified.
Hyundai Kona and Kia e-Niro are quite good conversions. But they were designed for all three fuel types. They have great ranges but they still lack advantages of purely EVs like a frunk or more cabin space than a comparable ICE. So you’re kind of right.
Hyundai-Ionic, soul+ kona
The most interesting thing I noticed is that their new Mustang inspired SUV built in USA is going to be a pure BEV. So Ford is building a ground-up BEV design for both US and European markets.
Why only Europe?
I fear Ford’s foot-dragging, very reluctant approach to the EV revolution is exactly the sort of behavior we see in companies which go bankrupt during a disruptive tech revolution.
It’s not merely that I think they’re handling the situation badly, it’s that I think they are in very real danger of seeing the company go bankrupt.
It was a European announcement focused on the European market vehicles.
They’re doing similar things in North America, with North American market vehicles.
Cause amerlika buy da truckees. Europe no buya da truckees.
EU legislation demand the reduction of CO2 emissions to 95g per km driven for the car fleet average sold each year. CO2 emission violations result in hefty penalties for thousands of Euro per car sold.
Adding PHEV and BEV to the fleet mix sold in the EU can reduce this amount significantly. Ergo all those are pure compliance cars limited to the EU states.
Too much pessimism here….
It’s clear Ford has figured it out and are now all in on electrification (yes that includes PHEVs as wells as BEVs, which any realistic observer knows with be in the mix for some time). Same for VW, Toyota, Honda, even GM. All of them are working feverishly on vehicles for the 2020-2023 time frame.
This is what everyone here wanted… electrification across the industry. This should be applauded, not poo-poo’d.
Sure some might die on the way, but far too earl to speculate who since we haven’t yet seen what crop of vehicles are going to show up in the 2020-2023 time frame. Take a seat and watch it unfold!
Trouble is “electrification” is a meaningless weasel word. Usually used to disguise a weak or zero commitment to switching to EVs.
At some point in the next 3-5 years the flip from ICE being headline price cheaper to EV being cheaper will happen almost overnight and when that occurs a company whose *new* “electrified” line up is based upon “mild hybrids” (they are at least ten years late to be designing new models of these) is not going to be well positioned because mild, “traditional” and even PHEVs unless very high EV range, are going to be dead in the water at that point. No one will buy them.
Though you say it’s too early to speculate, if they are only now talking about future models which will be mild / traditional and even then some years in the future, they are ten plus years behind the curve. Not a good place to be.
I think you underestimate the competitive pressure on the manufacturers. Yes, a manufacturer paying lip service with mild hybrids will not make it. But I doubt any of them are actually taking that sole position, regardless of their short term marketing statements need to meet next month’s sales goals.
Mild Hybrids and Full Hybrids. Wow. Ford is getting ready for the 20th century. Oh wait we’re already in the 21th century. Whoops I guess Ford should do a little more than that. The focus should be on all electric models.
. . I’d give Ford an adviced. Make an electric Mondeo, Focus and Fiesta.
Mondeo was always on the top 10 best seiling cars in Norway.. usually til 5. Now. . It’s like 34. No plugg in hybrid, and no BEV = almost no sales.
Ford did not sell 1 F150 in 2018, and probably less then 10 Mustang.
The cheapest Ford Mustang (2,3 liter ecoboost) cost more then a Tesla Model S in Norway.
Only Ford Fiesta, Focus, Ecosport (1 liter engine) and C-Max is cheaper then the so called luxury car from Tesla, Model 3.
Imagine what will happen when or if the cheaper model 3 arrives.. and add all the other EVs that come this year, and in 2020…
They should probably just license some MEB stuff from VW, and add Ford chassis and design. While they cancel all weekends and hollidays for their engineers for the next 3 years. Don’t see why that will benefit VW though.
But.. seriously I expect Ford have more EV tech, then they have showed us. They just take forever to implement it in their product lines.
Until then, they really have to focus – competition among brands with no EVs will be brutal.
Ford makes trucks.
Trucks make money.
Europe dona buy dem trucks.
End of story.