Ford Sales Are Tanking in Europe. And It’s Clear Why

Though it’s been little more than a year since Ford ended production of the Fiesta, it still boggles my mind that higher-ups thought it was a good idea. The Fiesta’s death was yet another slap in the face 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. 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.

But another problem looms. 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. A couple months ago, the company reiterated plans to phase out its Volkswagen Golf rival in November 2025 at the Saarlouis plant in Germany.

Looking at sales charts once again, wiping out the Focus from the lineup is the Fiesta story all over again. The compact segment grew by 11.5 percent in the January-June 2024 interval in the EU+EFTA+UK region. That equates to an extra 86,161 cars, bringing the total to 837,351. Sure, the Focus was down by 19.8 percent, but production was halted for a while due to a strike at the factory. Despite this setback, Ford did finish fifth in this segment with 47,070 cars. It came ahead of long-time rival Opel/Vauxhall Astra.

Once the Focus dies, the only car (that isn’t a crossover or an SUV) in Ford’s European lineup will be the Mustang. As much as we all love the pony car, the sports coupe/convertible duo won’t move the needle. It’s a niche car powered by a big ol’ V-8 that will deter buyers because of hefty taxes on large-displacement engines in many Euro countries. Through June, Ford only sold 1,323 ‘Stangs, down by 26.6 percent, albeit the seventh-generation is just coming out.

Although much smaller, the mid-size segment, which included the Mondeo (Fusion in the United States) until a couple of years ago, also grew in the first half of 2024. Demand jumped by 6.6 percent to 178,679 cars, representing an extra 11,004 units over the same period of last year.

Direct replacements for the Fiesta, Focus, and Mondeo are not planned. Instead, Ford is launching an electric Explorer large SUV and is bringing back the Capri, also as an electric SUV. The two are based on the Volkswagen Group’s MEB platform, so they’re related to the ID.4 and ID.5, respectively. Ford can’t realistically expect the EV duo to compensate for the demise of long-running nameplates such as the Fiesta, Focus, and Mondeo.

In the first half of 2024, purely electric cars had a market share of only 12.5 percent, according to data published by ACEA. Ford is also cooking up an all-electric Puma as its cheapest EV offering in Europe. The Puma Gen-E debuts later this year and it’ll face stiff competition from Stellantis. As a refresher, Ford has backed down from its objective to go fully electric in Europe by 2030, citing “softer” demand for EVs than originally projected.

The slump in sales highlights something key: there’s a limit to crossover buyers. The Fiesta, Focus, and Mondeo segments still generate strong sales in Europe, but Ford is now watching from the sidelines. The company is dead set on selling SUVs and the occasional Mustang.

But Europe isn’t the only place where Ford killed off its cars. The Fiesta, Focus, Fusion, and Taurus have been dead for years in the United States where the company switched focus (get it?) to big crossovers and trucks. However, CEO Jim Farley recently said Americans need to embrace smaller cars—the very ones Ford no longer offers.

In an interview with CNBC at the Aspen Ideas Festival in late June, Ford’s head honcho said: “We have to start to get back in love with smaller vehicles. It’s super important for our society and for EV adoption. We are just in love with these monster vehicles, and I love them too, but it’s a major issue with weight.”

At least for now, this statement shouldn’t be mistaken for a promise from Ford about selling smaller cars. America is a truck country after all. However, the situation is different in Europe where people prefer more sensibly sized cars. With the EU set to effectively ban sales of new gas/diesel cars in 2035, it’s likely too late in the game for a revival of the Fiesta and/or Mondeo.

The Focus is on its way out, so the next years are shaping up to be difficult for Ford in Europe, considering rivals haven’t abandoned regular cars. To make matters worse, EV growth is slowing down in Europe, with ACEA numbers showing electric cars were up by only 1.3 percent through June. That’s a worrying sign Ford’s electric Puma, Explorer, and Capri might not perform as initially estimated.

The silver lining for Ford of Europe is that the not-for-America gas Puma subcompact crossover is still selling like hotcakes. Deliveries rose by 8.4 percent to 83,668 units in H1 2024. However, the bigger Kuga (Escape in the US) suffered a decline of 10.1 percent to 54,995 vehicles.

The decision to channel its efforts into crossovers and EVs doesn’t seem to be paying off for Ford, especially when compared to how rival companies are performing in Europe. It saddens me to see the death of true Fords to make room for VW-derived products that are far more expensive.