Ford Cutting European Fiesta Output On Weak Demand
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.
More by Derek Kreindler
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Are they buying more crossovers too? Maybe they would like a nice automatic transmission if they ever tried one too...
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.
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.
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.