Ford to put focus on money making SUVs and vans
01 August 2018
Ford wants profitable SUVs and LCVs to play a bigger part in retailers’ business to get the UK and European operations back into profit. It expects a full year loss in Europe this time after making around £180 million in 2017.
The Transit, Kuga SUV and Ranger pickup and imports such as the Mustang make money but account for less than half of its sales volume and revenue.
Jim Farley, Ford’s head of global markets, said vans have 13% profit margins in Europe, adding: “Clearly we have to redesign Europe, centering the operations on our profitable LCV (and SUV) business.”
The UK was Europe’s main profit centre but the post-Brexit fall in the pound was blamed for most of the losses. He said: “In 2016 we made £901 million in Europe and most of it was in the UK. Brexit and the continued weak sterling has been a fundamental headwind for our European business.”
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