Ford of Europe makes a turnaround, though passenger car share drops to 8.2%

Focus on global C-platform coming up 2011

2011/04/04

Ford of Europe makes a turnaround with an increase in 2010 sales volume, aiming for positive profit in 2011 as well

 With an increase in sales to 1.573 million vehicles in 2010 for the first time in four years, Ford of Europe recorded revenue of 29.5 billion dollars, up 4.2% over the previous year (increased 10.9% as whole Ford). Pretax profit moved from the red for last year to the black by 182 million dollars.

 It remained black by 107 million dollars in the first quarter in 2010 and by 322 million dollars in the second quarter of the same year. Yet, the turnaround has stalled since the beginning of the latter half with deficits by 196 million dollars and 51 million dollars in the third and the fourth quarters, respectively. Beside the decrease in sales, the deficits were caused by the soaring prices of raw materials, an increase in sales incentives, and the release costs of the new Focus higher than expected.

 Based on the forecasts of Ford of Europe that the EU markets (19 countries) will be 14.5 to 15.5 million-unit scale in 2011 (15.3 million in 2010), Ford of Europe will stay focused on its positive pre-tax profit in 2011.

Ford of Europe's business results

  Sales (dollars in billion) Pretax profit (dollars in millions)
2009 2010 2009 2010
Ford of Europe 28.3 29.5 (144) 182
Ford total 116.3 129.0 2,599 7,149
Sources: Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)

Ford's sales volume by region (wholesale)

(1,000 units)
  Ford and Lincoln brands PAG Grand Total
North
America
South
America
Europe Asia-Pacific
and Africa
2005 3,410 335 1,753 505 764 6,767
2006 3,051 381 1,846 589 730 6,597
2007 2,890 436 1,918 535 774 6,553
2008 2,329 435 1,820 464 359 5,407
2009 1,927 443 1,568 604 324 4,866
2010 2,413 489 1,573 838 - 5,313
Sources: Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)
NOTES: 1. Wholesale volume includes Ford-made vehicles (including OEM vehicles) and local brand vehicles made by non-consolidated affiliates.
2. The data include sales volume of Mercury brand vehicles, which were discontinued in October 2010.
3. Mazda6 produced at Automotive Alliance International is included in the sales volume in North America before 2008, but not included after 2009.
4. PAG's data after 2008 are Volvo brand vehicles only.
5. Sales volume in Asia-Pacific and Africa before 2008 includes sales of Ford brand vehicles sold by non-consolidated affiliates in China. Data after 2009 include those companies' sales volume of Ford and JMC brands vehicles.
6. Volvo's vehicles sales (211K) are not included in 2010 as special items. Total sales volume of Ford and Volvo was 5.524 million units.

Ford of Europe's quarterly business results

  2009 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sales volume
(1,000 units)
Europe 343 400 393 432 416 420 340 397
Ford total 986 1,194 1,238 1,448 1,253 1,418 1,253 1,389
Pretax profit
(dollars in millions)
Europe (585) 57 131 253 107 322 (196) (51)
Ford total (1,662) 2,241 1,112 908 2,135 2,847 1,887 280

Ford of Europe's 2011 Plans

European markets Automobile market sales of 19 European countries where Ford track are to be 14.5 to 15.5 million units (it was 15.3 million units in 2010). UK, German and French markets are heading for recovery, although there are uncertainties in periphery European markets due to governmental budget cuts.
2011 Plan In 2010, Ford of Europe posted an operating profit of 182 million dollars. It will stay focused on positive operating profit in 2011 as well.
Sources: Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28),
Ford presentation material in J.P. Morgan Global High Yield & Leveraged Conference (2011/2/28)

 



Passenger car sales drop 13.2% to 1.125 M units and share down to 8.2% in the European market

 Ford had sales of 1.125 million passenger cars (on a registration basis) in Europe (EU 27 countries plus EFTA), decreased by 13.2% over the previous year. Its market share was 8.2%, down by 0.7 points from the last year's level. Sales continued to decrease even in 2011, and sales volume was 158K units as of February, down by 10.7% on a year-over-year basis. As a result, the market share dropped to 7.6%.

 Sales by model were as follows: 427 K units of the B segment Fiesta, down 11.8%, 292 K units of the C-segment Focus, in its last life cycle, down 12.4%, 74 K units of the SUV Kuga, up by 14.9% over the previous year thanks to brisk sales. The small van S-Max sold 47 K units, up by 7.7%.

Registered passenger cars and market share in Europe

  Group 2008 2009 2010 2010
Jan.-Feb.
2011
Jan.-Feb.
Number of
registered
vehicles
(units)
Ford 1,232,993 1,297,452 1,125,692 177,282 158,369
GM 1,348,583 1,257,218 1,187,644 160,036 170,014
VW 3,040,295 2,947,508 2,937,794 431,157 463,597
Renault 1,285,946 1,348,286 1,412,079 225,620 222,868
PSA 1,863,757 1,885,829 1,844,040 300,125 287,232
Fiat 1,182,999 1,255,072 1,042,228 192,380 156,937
Daimler 790,092 684,137 674,754 82,548 89,493
BMW 821,745 708,338 752,001 90,572 105,576
Toyota 783,803 856,018 608,433 102,867 94,936
Nissan 337,285 368,350 403,311 62,301 69,531
Honda 265,251 244,330 187,472 26,074 23,304
Hyundai-Kia 505,939 602,962 613,094 91,148 91,850
Others 1,281,311 1,069,094 1,005,427 142,699 153,414
Total 14,739,999 14,524,594 13,793,969 2,084,809 2,087,121
Market share Ford 8.4% 8.9% 8.2% 8.5% 7.6%
GM 9.1% 8.7% 8.6% 7.7% 8.1%
VW 20.6% 20.3% 21.3% 20.7% 22.2%
Renault 8.7% 9.3% 10.2% 10.8% 10.7%
PSA 12.6% 13.0% 13.4% 14.4% 13.8%
Fiat 8.0% 8.6% 7.6% 9.2% 7.5%
Daimler 5.4% 4.7% 4.9% 4.0% 4.3%
BMW 5.6% 4.9% 5.5% 4.3% 5.1%
Toyota 5.3% 5.9% 4.4% 4.9% 4.5%
Nissan 2.3% 2.5% 2.9% 3.0% 3.3%
Honda 1.8% 1.7% 1.4% 1.3% 1.1%
Hyundai-Kia 3.4% 4.2% 4.4% 4.4% 4.4%
Others 8.7% 7.4% 7.3% 6.8% 7.4%
Total 100.0% 100.0% 100.0% 100.0% 100.0%
Source : Association Auxiliaire de 'Automobile
NOTES: 1. Europe includes 27 EU countries plus EFTA.
2. Ford data do not include Volvo data. GM data do not include Saab data.

 

Sales volume of Ford passenger cars by model
(units)
  2004 2005 2006 2007 2008 2009 2010
C-Max 157,225 136,117 112,162 124,108 109,118 75,604 66,663
Fiesta 312,533 319,992 369,907 373,086 342,027 483,744 426,695
Focus 398,179 410,466 461,321 423,070 384,619 333,714 292,348
Fusion 76,776 73,153 93,535 82,726 70,325 57,606 36,322
Galaxy 34,807 32,931 25,475 34,394 30,819 26,182 24,323
Ka 78,400 68,560 61,750 52,109 47,664 108,342 93,947
Kuga 10 27,083 64,773 74,431
Maverick/Escape 5,961 5,256 4,700 2,553 663
Mondeo 171,518 157,196 135,095 152,061 167,394 117,565 100,157
Mustang 76 680 752 612 906
Ranger 925 1,312 504 790 701
S-Max 38,648 70,840 55,250 43,260 46,573
Streetka 14,223 8,000 1,430
Transit Connect/Tourneo Connect 5,258 4,233 2,386 5,696 4,506 3,148 3,038
Transit/Tourneo 8,998 8,604 11,933 13,818 16,911 15,294 14,987
Other 812 899 868 919 1,350 2,612 2,505
Ford brand 1,265,691 1,227,399 1,320,466 1,336,792 1,259,336 1,331,844 1,181,989
Aston Martin 1,062 2,624 3,809 1,909
Jaguar 59,284 45,803 42,439 33,755      
Land Rover 80,541 87,792 90,492 105,568      
Volvo 251,446 247,143 246,392 268,284 225,764 207,928
Other 69 59 58 50 42 39 25
Ford total 1,658,093 1,610,820 1,703,656 1,746,358 1,485,142 1,539,811 1,182,014
Source: Automotive News Europe Executive Edition 2011/2/22
NOTES: 1. The table covers 18 Western European countries and Hungary by 2005, 28 European countries in 2006 and 2007, 29 European countries in 2008 and 30 European countries in 2009 and 2010.
2. Commercial vehicles are not included in the data above.
3. Ford sold Aston martin in March 2007. Jaguar and Land Rover, which was divested in June 2008, were also classified as discontinued operations at the end of 2007. Volvo was sold in August 2010.

 



Five EV/HEV models to be released in Europe by 2013, including Focus Electric

 Ford of Europe will introduce five EV and HEV models in European markets by 2013 most of which are C-Segment, in accordance with Ford's "Global electrification Strategy".

Sales plans for EV and HEV

Model names Timing of release Outline
Transit Connect
Electric
EV Latter half
of 2011
This is an EV version of the light commercial vehicle Transit Connect. It employs an electric motor of Azure Dynamics. The maximum range is 80 miles per charge. With a 240 V source, it will take six to eight hours for charging. The Transit Connect Electric was launched at the end of 2010 in North America.
Focus Electric EV Summer
2012
The Focus Electric is the first electric passenger car of Ford. It is an EV version of the C-segment Focus. It is able to travel at 136 km/h at maximum, and run about 160 km per charge. It takes eight to nine hours to charge via home outlet (230 V), and five to six hours via the special charger. Subject to an appropriate charging station with special equipment, it will take three to four hours.
C-Max Energi PHEV 2013 The C-Max Energi is a plug-in hybrid model, and the C-Max HEV is a full hybrid vehicle. Both are based on the five-seat C-Max, and they will be produced at the Valencia Plant in Spain from 2013.
C-Max HEV HEV 2013
Next Generation
HEV
HEV 2013 The next generation HEV will use the global C-platform. It will be launched in North America in 2012.
Sources: Ford of Europe Fact Sheet - January 2011, Ford Press Release 2010/3/2, 6/11, 2011/3/14

 



Model plan: Ford launches the New Focus on the Global C-Platform in March 2011

 Ford will launch 20 new models or remodeled vehicles over the next three years. According to the One Ford Strategy, it will introduce ten models based on the Global C-Platform including new models or derivatives by 2012. It is planned to strengthen the product lines of the C-segment and CD-segment vehicles.

Models to be launched in Europe after 2011

Model names Timing of release Outline
New Focus March 2011 The New Focus is a C-segment car on the Global C-Platform. It is sold in four-door, five-door and wagon versions. They deliver 40 mpg highway, and 28 mpg city. In 2012, an EV version of Focus will be launched. In Europe, it is produced at the Saarlouis Plant in Germany and the St. Petersburg Plant in Russia.
New C-Max Latter half
of 2011
The New C-Max is a C-segment five-seat Multi Activity Vehicle (MAV) which uses the Global C-Platform. It will be produced at the Valencia Plant in Spain. In the US, the seven-seat Grand C-Max will be launched in the latter half of 2011.
New Ranger November
2011
The New Ranger is a compact pickup, which was developed as a global strategic model in Australia under the One Ford Strategy. The model will have a four-cylinder 2.2-liter diesel engine and a five-cylinder 3.2-liter diesel engine. It will be fully equipped with safety systems including rear view camera and ESP.
B-Max 2012 The B-Max is a compact MAV. Its production-ready model was unveiled in the Geneva Motor Show held in March 2011. It features no B-pillar but sliding doors on the rear seat side, which give passengers a clear opening. The B-Max employs the platform of the Fiesta.
Sources: Ford of Europe Fact Sheet - January 2011, Ford Press Release 2010/12/6, 2011/2/8, 2/28, Ford News 2011/3/1
NOTES: 1. The Focus is produced on the same platform in the US, China and Thailand. It has 80% parts commonality and uses 75 percent of the same supply base globally.
2. The New Ranger will not be introduced in North America.

 



Ford sells Volvo to Geely, while agreeing to establish joint venture with Russian Sollers

 Ford sold its ownership of Volvo for 1.8 billion dollars to Chinese Zhejiang Geely Holding Group, a Chinese independent OEM in August 2010. On the other hand, Ford and Russian Sollers agreed in February 2011 to establish a joint venture to produce and sell Ford vehicles. Besides, Ford and a French company PSA will spend total 300 million Euros to develop a EURO6-compliant diesel engine.

Ford sells Volvo to Geely for $1.8 billion

Ford completed sale of Volvo to Chinese Zhejiang Geely Holding Group in August 2010. It was sold for total 1.8 billion dollars. According to the One Ford Strategy, Ford will focus its corporate resources on the Ford brand.

Source: Ford Press Release 2010/8/2, and Zhejiang Geely Holding Group Press Release 2010/8/2

Russia: Ford and Sollers sign memorandum to establish a joint venture

Ford and Russian manufacturer Sollers signed the memorandum of understanding to establish a fifty-fifty venture Ford Sollers in February 2011. This joint venture will start operations from the end of 2011. Its production will take place at Ford's Vsevolzhsk Plant near St. Petersburg, and Sollers' plant in Republic of Tatarstan, and the joint venture will sell Ford vehicles. This venture company will also produce and supply engines to Ford vehicles made in Russia.
Sources: Ford Press Release 2011/2/18, Automotive News Europe2010/2/23, 28, Fiat and Sollers Joint Press Release 2011/2/18
NOTES: 1. At first, Sollers had agreed to establish a joint venture with Fiat in February 2010. After that, Sollers announced that they broke off the negotiation in February 2011. Sollers will stay on the current cooperative relationship for production of Fiat Vehicles. On the other hand, it is reported that Fiat would build a plant with an annual production at the 500 K-unit level by itself.
2. It is said that the Russian passenger car market will grow to the three million-unit scale in 2014, thereby, surpassing Germany and becoming the largest market in Europe.

Ford to develop EURO6 diesel engines with PSA

Ford unveiled the plan to develop and produce EURO6-compatible diesel engines with PSA, with which Ford has developed diesel engines for a decade. For this joint development, about 300 million Euros will be invested and shared between both companies. Production of the new engine will start in 2013.

Sources: Ford and PSA Joint Press Release 2010/9/29

Ford invests 300 million Euros in German Saalouis Plant

Ford invested 300 million Euros in the Saarlouis Plant in Germany to get ready for production of the new Focus. Of the total investment, Ford spent 100 million Euros for a car body assembling robot, 75 million Euros for new tools and 18 million Euros for coating technology.

Sources: Ford Press Release 2010/12/6

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