Ford Europe has made it quite clear that big changes are needed as of late as the division continues to struggle in that particular part of the world, which has become quite challenging for many of its peers as well. In fact, Ford Europe recently announced that it will cut 4,000 positions by the end of 2027 – most of which will occur in Germany and the UK – amid soft demand for its passenger vehicles and EVs. At the same time, Ford Europe will focus on a more successful part of its business – the commercial segment – to help right the ship.
According to The Detroit News, Ford Europe plans to expand its commercial-focused Pro division in that region, all while “right-sizing” its passenger vehicle business to meet declining demand. “We are committed to the European market, and actually we want to double down on the Ford Pro business,” said Hans Schep, general manager for Ford Pro in Europe. “We want to protect the Ford Pro business and grow it and grow our leadership. This is done to protect our business in Europe, which is mainly going to be a Pro business.”
“Since we’ve built Ford Pro, we have this whole ecosystem around it to really switch from a transactional relationship with our customer on vehicles to an always-on productivity discussion,” he said. “We’re basically selling productivity now.” Ford Pro recorded $7.386 billion in operating profits in the first nine months of 2024 across the entire globe, which is 36 percent higher year-over-year, coupled with a 14.6 percent operating margin. The Ford brand accounted for roughly 15 percent of the commercial vehicle market in Europe through September, all while its passenger vehicle market share dropped from 3.5 percent to 3.0 percent.
Ford’s vans have long been popular entities among commercial customers in Europe, so it’s clear that the automaker is focusing on its strengths moving forward – particularly in a hyper competitive market. Meanwhile, Ford also ditched its plan to go all-electric across the automaker’s passenger vehicle lineup recently – calling that plan “too ambitious” – and pivoting to a more diverse powertrain lineup, all while trimming back production of the Ford Capri EV and Explorer EV at the Cologne Electric Vehicle Center in Germany.
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Since we’ve built Ford Pro, we have this whole ecosystem around it to really switch from a transactional relationship with our customer on vehicles to an always-on productivity discussion,” he said. “We’re basically selling productivity now”
What????