Ford Targets Improving Profitability As European Industry Continued To Decline In May

Ford Targets Improving Profitability As European Industry Continued To Decline In May

COLOGNE – The end of scrappage schemes and continuing weakness in consumer confidence resulted in May being the second consecutive month of decline in the European new car industry.

Ford sales reflected the decrease in the industry, with sales of 105,500 units being 17,100 lower than in the previous year. Market share at 8.2 per cent for the month was 0.7 percentage points down on May 2009.

“Our primary focus at Ford is to improve our profitability – and we successfully achieved this in the first quarter of the year” said Ingvar Sviggum, vice-president of Marketing, Sales and Service at Ford of Europe.

“We’ve long been prepared for the slow-down in the market and are not surprised that many of our competitors continue to react with the tactic of heavy discounting, which we believe is ultimately unsustainable and damages the brand.”

“In the face of such difficult market conditions, we have put in place a simple, consistent and effective plan: we will grow our volume and share where it makes good business sense to do so, such as in Turkey; we will reduce in a controlled way our share and volume in the areas of our business that are less profitable; we will improve our margins and protect the re-sale value of our products; and we will continue to provide our customers with the best possible new vehicles and technologies. This is how we will continue to improve our profitability and strengthen the Ford brand,” said Mr. Sviggum.

Ford remained Europe’s No.2 best-selling passenger car brand year-to-date, and was the best-selling brand for May and in the first five months of 2010 in the UK, Denmark, Hungary, Ireland and Turkey respectively.

Fiesta continues to be Ford of Europe’s No.1 top-selling new car, 204,000 units sold during the first five months of 2010. Since the latest generation of the model entered the market in October 2008, 833,000 Fiestas have been purchased by customers around the world, 730,000 of whom have been in Europe. Production of the Fiesta also recently started in Mexico for the North American market.

2010 – A Busy Year for New Products
In 2010, Ford of Europe has pledged to reveal or launch more than 11 new models and derivatives, along with a host of new technologies, including:

New-look S-MAX and Galaxy models which are already on sale
The ultimate performance Ford road car, the limited edition Focus RS500, that has sold out in record time
The all-new Ford C-MAX and Grand C-MAX multi-activity vehicles that will go on sale in the second half of the year
The global, next-generation Ford Focus four-door, five-door and Wagon models which have been previewed ahead of launch in early 2011
An improved Ford Kuga range including a new 163PS, 2.0-litre TDCi model which is available with the efficient, six-speed dual-clutch Ford PowerShift transmission
Ford’s new range of improved diesel engines and the all-new, high technology Ford EcoBoost 2.0-litre direct-injection and turbocharged petrol engine which have been launched in the new S-MAX and Galaxy and the Ford Mondeo to considerable acclaim

“2010 is extremely busy for Ford in terms of new vehicle launches, and we have some very exciting new models coming to the market this year and early in 2011,” Mr Sviggum added.

“For our customers, the Ford range has never been stronger and these new models are introducing more innovative and exciting technology designed to make our cars smarter, safer, more environmentally friendly and better quality than ever. We’ve seen external surveys confirming that Ford has one of the freshest vehicle ranges of any auto company in Europe today, and we fully intend to continue to provide our customers with great new products and technologies.”

Ford year-to-date vehicle sales in the Euro 19 markets
From January to May 2010, Ford registered 598,400 vehicles in its traditional 19 European markets, 4,700 units or 0.8 per cent below 2009.

Market share in the main 19 European markets was 8.9 per cent, down by 0.3 percentage points when compared with the same period in 2009. Ford’s year-to-date share increased in six of the company’s main 19 European markets.

Ford May and year-to-date vehicle sales in the Euro 51 markets
Ford of Europe sold 127,700 new vehicles in May, a reduction of 11.3 per cent on the same month 2009, and 680,900 vehicles YTD across its 51 markets. Compared to the first five months of 2009, sales were 2.2 per cent lower.

May Highlights

Ford Market Performance:

No. 2 passenger car brand in Europe.
Market leader in the UK, Denmark, Hungary, Ireland and Turkey.
Increased share in six of Ford’s main 19 European markets.
Spain May volume was up by 14.8 per cent versus the same month last year or 1,200 units to 9,200 – the highest increase in new car registrations in all of Ford’s European markets in May. Ford’s market share there fell by 2 ppts to 8.0 per cent.
Ford was also No.1 imported brand in Italy, where share was at 9.0 per cent, 0.9 ppts lower on May 2009.
Denmark’s May volume of 1,700 was up 91 per cent on May 2009 or 800 units - the highest equal May sales volume there since 1997.
Highest share gains were delivered in Denmark (up 4.8 ppts; market share at 13.0 per cent, the highest share since May 1997), Ireland (up 1.3 ppts; share at 15.6 per cent; the best May share since 1996) and Greece (up 1.7 ppts, at 8.1 per cent; highest share since May 2007).
Turkey’s market share in May was at 17.0 per cent, up by 0.2 ppts on May 2009.

Source: http://www.ford.com/about-ford/news-announcements/press-releases/press-releases-detail/pr-ford-targets-improving-32797

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Ford Targets Improving Profitability As European Industry Continued To Decline In May

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