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Ford, one of the giants of the global automotive industry, is facing an unexpected and devastating crisis in its sales, which has left drivers around the world perplexed and angry.
Since the closure of its operations in Brazil and the end of production of iconic models such as the Seafood and the Focus, the automaker seems to have lost its way, focusing on strategies that are not pleasing consumers.
What could have led such an established brand to such a sharp decline? The answer is more surprising than one might imagine and reveals a miscalculation that could cost the company dearly.
The decline in sales and the focus on crossovers
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According to the site Motor1In recent years, Ford decided to focus its efforts on larger vehicles, such as SUVs and crossovers, believing that this would be the dominant trend in the market.
However, this bet has not proven to be as accurate as expected. According to data from European Automobile Manufacturers Association (ACEA), Ford sales fell 16,9% in the European Union, EFTA and the United Kingdom in the first half of 2024, totaling 226.365 units sold.
This number represents a drastic drop in the company's market share, which now stands at just 3,3%, a significant reduction compared to the previous 4,1%.
The decision to discontinue popular models such as the Fiesta, Focus and Mondeo appears to have been a fatal blow. Demand for smaller cars, especially in Europe, is still robust, and the absence of these vehicles in Ford's portfolio has led consumers to look for alternatives to other brands.
As Dataforce, a company specializing in automotive research, points out, all models that stood out in the small car segment recorded an increase in sales in the first half of 2024, while Ford saw its sales plummet.
The loss of the Fiesta and the imminent departure of the Focus
The impact of the Fiesta's withdrawal from Ford's production lines was profound. The model, which for years was one of the best-selling cars in Europe, saw its buyers migrate to competitors such as Dacia Sandero, Renault Clio and Peugeot 208, which showed growth in sales in the same period.
The Fiesta's absence not only weakened Ford's presence in the compact market, it also angered a loyal consumer base who feel abandoned by the brand.
But the crisis doesn't stop there. Ford has already announced that the Focus, another iconic model of the brand, will be discontinued in 2025. This decision, taken in 2022, follows the same line as what happened with the Fiesta and Mondeo.
However, the elimination of the Focus could represent an even more devastating blow for Ford, as the segment in which the car is included grew 11,5% in the first half of 2024. While sales of the Focus fell by almost 20%, its direct competitors, such as the Volkswagen Golf and Skoda Octavia, saw their sales soar.
Ford's strategy and the uncertain future in Europe
With the imminent departure of the Focus, the only non-SUV or crossover car left in Ford's European portfolio will be the Mustang, a niche vehicle that is unlikely to make up for the losses of the other models.
Ford's insistence on focusing exclusively on SUVs and crossovers appears to be alienating consumers even further, especially in a market like Europe, where smaller cars are still preferred.
To try to adapt to new market demands, Ford has invested in electric models, such as the Explorer and Capri, both SUVs based on the Volkswagen Group's MEB platform.
However, the reception of these vehicles is still uncertain, and sales figures for electric cars in Europe are not as promising as the company had hoped. In the first half of 2024, electric vehicles represented just 12,5% of the market, which raises doubts about the effectiveness of Ford's new strategy.
The North American market and global difficulties
Ford's crisis is not limited to Europe. In the United States, the company also abandoned smaller models, such as the Fiesta and Focus, to focus on pickup trucks and crossovers. Although these vehicles are popular in the American market, the change in strategy has generated criticism.
In a recent interview with CNBC, Ford CEO Jim Farley admitted that Americans need to get interested in smaller vehicles again, especially with the growing demand for electric cars.
In Brazil, the situation is no different. With the end of Ka and EcoSport, Ford's entry-level line it is now represented by the Maverick pickup truck, a larger vehicle that may not attract consumers who previously opted for more compact models. Ford's change in focus, moving away from smaller cars, has alienated a significant portion of its former customers, both in Europe and the Americas.
Ford's future in Europe is in question
Ford is at an inflection point where decisions made in the coming years will be crucial to the brand's future in Europe and beyond. The focus on SUVs and electric vehicles, although in line with some market trends, may not be enough to regain the confidence of consumers who feel abandoned.
With rivals continuing to invest in a diverse range of vehicles, Ford risks becoming irrelevant in markets where it was once a leader. The question remains: will Ford be able to reverse this situation and win back consumers, or are we witnessing the beginning of an irreversible decline?
