Introduction
Even though it’s been a little over a year since Ford ended production of the Fiesta, it still boggles my mind that higher-ups thought that was a good idea. That was the second slap in the face in recent years for people who still want cars. In 2022, the Mondeo went the way of the dodo, and in 2019, the Ka city car perished. And the sales numbers don’t lie—the decision to focus on crossovers isn’t paying off. According to figures published by the European Automobile Manufacturers’ Association (ACEA), Ford is way down this year. Demand in the European Union, European Free Trade Association, and the UK plummeted by 16.9 percent to 226,365 cars. There are 27 countries in the EU, plus another four in EFTA, while the UK is listed separately since it left the EU in early 2020. Ford’s market share in the EU+EFTA+UK region dropped from 4.1 percent to only 3.3 percent through June. That’s hardly a surprise. The discontinuation of the Fiesta certainly hampered sales.
Fiesta Fallout
According to automotive research specialist Dataforce cited by Automotive News Europe, all but one model that made it to the top 10 in the small car segment was up in H1 2024. Most of the others were up double digits. Overall, the segment increased by 5.7 percent to 956,865 superminis. That’s an extra 51,392 cars compared to H1 2023, despite the Fiesta’s cancellation. With Ford’s small hatchback gone from the lineup, customers decided to buy something else, and then some. The Dacia Sandero, Renault Clio, Peugeot 208, and more saw significant increases in sales while Ford’s absence from the segment was noticeable.
Looming Focus Loss
But there’s another problem looming. Ford is about to pull the plug on the Focus, as well. The decision was announced in mid-2022 when the Blue Oval said it would discontinue the compact car in 2025. Looking at sales charts, wiping out the Focus from the lineup is the Fiesta story all over again. The compact segment saw growth in sales even if the Focus itself experienced a decline. With no direct replacements for the Fiesta, Focus, and Mondeo planned, Ford may be missing out on key segments in the European market.
Electric Future
Ford has shifted its focus towards electric vehicles, planning to launch electric versions of existing models and new electric SUVs. However, with purely electric cars only holding a market share of 12.5 percent in the first half of 2024 in Europe, it might be a tough sell for Ford’s upcoming EV offerings. The company had originally aimed to go fully electric in Europe by 2030 but has since backed down due to softer demand for EVs than anticipated.
Regional Differences
Ford’s actions differ in Europe and the United States, with the latter abandoning small cars in favor of big crossovers and trucks. CEO Jim Farley’s recent comments indicate a potential shift back towards smaller vehicles in the American market. However, in Europe, where the trend towards smaller, more sensible vehicles is strong, Ford’s decision to phase out traditional cars like the Fiesta and Focus may come back to haunt them as the market evolves.
Conclusion
Ford’s decision to discontinue popular car models like the Fiesta, Focus, and Mondeo in favor of crossovers and EVs may not be paying off as anticipated, especially in the competitive European market. With the future of Ford’s lineup in Europe uncertain and growing competition from rival companies, the coming years could prove challenging for the once iconic automaker.