After Ford and General Motor’s expansion to Europe in previous years, the company is now scaling back to what they know best: trucks and SUVs.
At the moment, Ford currently operates 23 plants in Europe, including the UK, Spain, Russia and Romania. The plans at the time of building these plants was to expand its market globally through its expansion throughout Europe. However, Ford have recently made a proposal to cut at least six of these European plants. This means that around 12,000 jobs could be lost or at stake.
The plan to cut back from Europe plants is not uncommon. General Motors (GM) cut back almost all plants in 2017, before selling their European brands to Peugeot. It seems as though these two carmakers were facing a high amount of competition throughout the European regions, due to high successful competitors such as VW, Renault and Peugeot.
According to the European Automotive Manufacturers Association, VW’s new passenger-car registrations in the EU between January and May 2019 was 745,299, whereas Ford’s was only 421,510.
The new focus for Ford, is to invest in making vehicles for the commercial market, business buyers and governments, as opposed to personal-use cars. Ford will be directing their energy on more cargo vans, trucks. Due to Ford being the number one business vehicle company, it sets the carmaker at an advantage with its competition.