Ford Cutting European Fiesta Output On Weak Demand

Derek Kreindler
by Derek Kreindler

As one of Europe’s most popular vehicles, the Ford Fiesta’s sales is an interesting datapoint when it comes to looking at the strength of the overall European car market. So it’s interesting that despite a supposed rebound of Europe’s new car market, Ford is cutting Fiesta output at its plant in Cologne, Germany.

Just-Auto is reporting that Ford will cut output for 11 days, despite an overall EU market up 6 percent this year, though key markets like France, Italy and Germany were down slightly. Last year, the Fiesta was Europe’s best-selling small car, and according to Polk registration data, the top-selling subcompact in the world. The aforementioned countries are also key markets for the Fiesta (though the UK, its top market, is still going strong), so Ford won’t be taking this development lightly.

Derek Kreindler
Derek Kreindler

More by Derek Kreindler

Join the conversation
6 of 20 comments
  • Tinn-Can Tinn-Can on Sep 19, 2014

    Are they buying more crossovers too? Maybe they would like a nice automatic transmission if they ever tried one too...

  • Big Al from Oz Big Al from Oz on Sep 20, 2014

    Stagnation and soon to be deflation is going to kill the Euro vehicle market. They will have to rely on exports. I bet they will be hoping for an FTA with the US very soon. The US will have the upper hand dealing with the EU. Like I've always stated he who controls the balance of trade controls the world.

    • See 1 previous
    • Big Al from Oz Big Al from Oz on Sep 20, 2014

      @stuki, I agree with you regarding the 'Mexican' situation. Mexico is becoming a major automotive manufacturer. I think as we move into the future you'll see major vehicle assembly hubs globally. Mexico will be one of those hubs. Thailand is another. The EU must do something to liven up it's economy. Growth is marginal at the moment and it appears it could go into a deflationary phase. Japan is still a very significant economy/market, but it is becoming overshadowed by the Chinese. Also, within the East, SE, and South Asian countries you have several medium sized economies. They also seem to be offsetting the Japanese economic woes. The Japanese have trouble moving. Since the 18th Century the Japanese industry has been very reliant of government assistance. It was probably more reliant than the EU, which really started after the Japanese in economic planning to the same levels. I really don't know where the Japanese will end up. The Chinese and even the SE Asian countries are extremely competitive. I'm waiting for the Indians to remove the corruption and red tape hampering better growth. There has been a gradual increase of pressure being applied to the Indian's by the international (OECD) community for India to come into the 21st Century.

  • STRATOS STRATOS on Sep 20, 2014

    The market is telling Ford to change the styling (not the content)and lower the price.European economy is slow ,but cannot be blamed for their problems.

  • Lorenzo Lorenzo on Sep 21, 2014

    All Ford is doing is managing its European inventory, keeping it line with sales. It's better than risking the death spiral of overbuilding > discounts > lower transaction prices > lower profits > inadequate capital to develop new models > borrowing > excessive debt load > bankruptcy.