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The presentation of Ford's financial results cast a dark cloud over the activities of Europe that are negatively influenced by the ever-increasing customer orientation towards SUVs, at the expense of hatchback, sedan and monovolum models. In addition to this easy-to-understand factor, Americans also note the negative influence and events related to Brexit, although Britain's separation from the EU is not yet effective. According to Ford data, European operations are heading towards a pre-tax loss of $ 73 million in the second half, after a profit of $ 88 million in 2017. In addition, for the year 2018 , the loss is expected after a profit of $ 234 million was recorded last year.
These figures pushed Jim Hackett, CEO of Ford in May 2017, to declare that "we are extremely dissatisfied with the performance of Europe".
Following these results, Ford plans to redirect spending in Europe from conventional cars to SUVs and light commercial vehicles, including light trucks. . This is because the brand has a positive evolution in these market segments.
And CFO of the group, Bob Shanks, said that much of the range of Ford vehicles sold in Europe is currently unprofitable. "The poor performance of our portfolio represents the majority of our range, our revenues and capital in the region," he said, "and the poor performance models are" mostly out of class cars and multifunctional vehicles) like C-Max, "says Shanks.On the contrary, according to the CFO, models such as Transit, Kuga or Ranger, as well as other" imported vehicles "are marketed in Europe. to imported vehicles, Bob Shanks includes Edge SUV and Mustang.
In this context, Jim Farley, global sales manager of Ford, announced that "we must obviously reorganize the division. in Europe, with a focus on our profitable light commercial vehicle (nn) activities. "SUVs are also part of this plan." Capital allocation departments will now align with business opportunities in the SUV and LCV areas, says Farley
What will be the situation? unhappy from the Ford division in Europe on the Craiova plant, but also on the National Company remains to be seen, but it is clear that they will have to adapt their business to the new directions dictated by the leaders of the US group Ford
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