In essence, Ford urges governments, unions and European stakeholders to collaborate to support the transition towards electric mobility. The historic US manufacturer has essentially identified two problems: the misalignment between regulations on CO2 emissions and the (low) consumer demand for electric vehicles; the lack of a clear political agenda to advance e-mobility in Europe and Germany. Finally, the American manufacturer appealed to the need for clear policies: incentives for consumers, investments in charging infrastructure, flexibility in emissions regulations and reduction of production costs.
Minister Urso: «It’s the fault of the crazy European rules»
The Minister of Business and Made in Italy, Adolfo Urso, spoke about the Ford crisis. For the automotive sector “the problem lies in Europe and in the crazy rules it has imposed on its businesses and its work”, said the Minister of Business and Made in Italy during the question time to the House. «Ford intends to cut 4 thousand workers in Europe, 3 thousand in Germany alone», while «Volkswagen has already announced that it will close 3 of the 10 plants in Germany. Tens of thousands of employed workers and engineers have been fired or are about to be fired in European factories”, recalled the minister, highlighting that for this very reason “we have defined with the Czech Government a position paper which changes the trajectory, confirming the increasingly difficult, ambitious and challenging objectives of 2035.” The paper “will be presented on November 28 and we hope it will be shared.” Otherwise, companies in the car sector could incur fines of up to “15 billion euros (or heavy cuts in the production of thermal cars, ed.), a boulder that would crush the European car sector”, added Urso.
The reasons for a collapse
Ford’s is an industrial and employment tragedy foretold. Actually, phone call. And now with cuts for 4 thousand places in Europe (so called 4 thousand families), Pandora’s box is opened once again: the Oval is no longer blue in the Old Continent. He is cyanotic, not breathing, almost in a coma with sales plummeting and hemorrhaging market share. Ford’s market share in the old continent is now at 3%, when before Covid and the launch of suicidal strategies it rivaled head-on the other large European generalist manufacturers.
The reasons for this implosion are multiple: obviously there are the impositions of politics on electricity – which include limits on CO2 emissions – but there are also the after-effects of the perfect storm of the pandemic and the semiconductor crisis. Then there’s something else: a combination of bad choices in terms of line-upbrand positioning and technological choices. All within a strategy that betrayed the legacy of Fordism and the idea of ”democratic” technological development: the car for everyone.
Puma can’t do it alone
Once the Fiesta was over, 16 million cars sold between 1976 and 2023, Puma alone (in October eighteenth in the ranking, with 11,104 units, -21%) was not enough to compensate for the attempts to push on the premium front. Not to mention the flop of the electric Mustang Mach-E, unfortunate because it was born in times of Covid, but in fact not able to withstand the competition. All seasoned with ineffective communication and marketing strategies. Where has the simple and ingenious Ford of the C-Max, the Kuga and the Mondeo gone? Evaporated, giving customers to Skoda. And then the latest models Made in Cologne, on the Volkswagen Meb platform. Capri, in particular, almost sounds like an insult to the legendary coupé, symbol and icon of the century-old European Ford. Which perhaps has reached the end of the line.
Ford’s Electric Dilemma: A European Conundrum
In a classic case of “What could possibly go wrong?” Ford is here waving a white flag, calling for a collaborative effort between governments, unions, and all sorts of European stakeholders. The automotive giant’s assessment is that two things are driving their EV ship towards a rocky shore: the lack of consumer enthusiasm for electric vehicles—and let’s be honest, who can blame them?—and a political agenda that seems as clear as mud. Ford’s CEO is essentially saying, “Hey, if you want us to go electric, perhaps, I don’t know, you could incentivize consumers? Maybe invest a little in charging infrastructure?” Kind of hard to sell a steak when your customers can’t find the grill, right?
Minister Urso: «It’s the fault of the crazy European rules»
Enter Minister Adolfo Urso, who’s stepping up to the plate to call out the “crazy European rules” that have Ford—our dear friend, the American automaker—scratching its head. While he’s at it, he announces that Ford plans to cut 4,000 jobs across Europe, 3,000 of those in Germany alone. It’s a bit like watching a slow-motion train wreck where you can’t decide whether to cover your eyes or grab some popcorn. He does remind us that there’s a “position paper” coming—graciously presented on November 28—hoping to alter the trajectory of these mad rules. But what will that mean for the future of the automotive workforce? Is there a joke about government papers here? Because I just can’t seem to find the punchline.
The reasons for a collapse
Let’s face it, Ford’s troubles are akin to a Shakespearean tragedy—only with more metal and fewer daggers. With a market share of only 3% in Europe, Ford’s like the last kid picked in dodgeball. Once boasting the impressive Fiesta lineup—16 million of those little beauties rolled out since ‘76—they now find themselves with the latest models evoking as much excitement as finding a parking ticket on your windshield. The pandemic’s left its mark, the semiconductor crisis has thrown a wrench into the gears, and let’s not forget those utterly questionable marketing choices. It all begs the question: what happened to the Ford that built cars for the people? Did they just decide that confusion was the new clarity?
Puma can’t do it alone
Speaking of models, once the Fiesta bid farewell, we’re left with the Puma, whose sales numbers are as inspiring as a lukewarm cup of decaf coffee. Selling just over 11,000 units in one month? That’s hardly a crowd-pleasing encore. Meanwhile, the Mustang Mach-E is proving to be a hard sell, and I can hear the ‘electric pony’ galloping away in despair. It feels almost poetic—but not in a good way—because this is the Ford that defined an era, now chasing customers away faster than you can say “what ever happened to the C-Max?”
So here we are, folks. Ford is in a similar position to a comedian at an open mic night—nervous, waiting for laughs that just aren’t coming. As European regulations tighten like a pair of too-small jeans, the question looms: can the legacy of Ford—once a symbol of accessible mobility—survive in this electrified world? Or is this the start of a long goodbye?
Ford is actively calling for a united effort among governments, labor unions, and European stakeholders to facilitate the critical transition to electric mobility. The iconic American automaker has pinpointed two major issues impeding progress: a significant disconnect between current regulations governing CO2 emissions and the notably low consumer interest in electric vehicles, alongside a pervasive absence of a cohesive political framework advocating for the advancement of e-mobility across Europe, particularly in Germany. In light of these challenges, Ford has underscored the urgent necessity for transparent and effective policies that include consumer incentives, robust investment in charging infrastructure, flexible emissions regulations, and initiatives aimed at reducing production costs.
Minister Urso: «It’s the fault of the crazy European rules»
Adolfo Urso, the Minister of Business and Made in Italy, has provided a critical analysis concerning the turmoil faced by Ford and the automotive industry in Europe. During a recent session of question time in the House, he articulated that the core issue is rooted in Europe, pointing to the “crazy rules” imposed on businesses operating within the continent. He revealed that Ford plans to eliminate 4,000 jobs across Europe, with a staggering 3,000 losses projected in Germany alone. Additionally, Volkswagen has already signaled its intention to shut down three out of its ten factories in Germany, a move indicative of the larger crisis facing the sector. The minister emphasized that this situation has led to the dismissal or impending layoff of tens of thousands of workers and engineers at European manufacturing plants. To combat this pressing issue, he also mentioned the collaborative efforts with the Czech Government to draft a comprehensive position paper set to redefine and address the ambitious targets for 2035. This strategic document is scheduled for presentation on November 28, with hopes that it will garner broad support. Urso warned that failure to take the necessary actions could result in fines of up to 15 billion euros or severe reductions in the production of thermal vehicles, a setback that could devastate the European automotive landscape.
The reasons for a collapse
The decline of Ford in Europe represents a devastating industrial and employment crisis that has been virtually inevitable for some time. Now, as the company announces a staggering cut of 4,000 jobs in the region—impacting entire families—the stark reality is that Ford’s once-vibrant presence in the European market is now in dire straits. With sales plummeting, the brand’s market share has dropped to a mere 3%, a dramatic decline from its previous standing where it was able to compete effectively against other major European generalist manufacturers. A multitude of factors has contributed to this alarming implosion: the strict political mandates surrounding electric mobility, particularly the imposition of CO2 emissions limits, are key elements. Coupled with the lingering repercussions of the COVID-19 pandemic and the ongoing semiconductor supply crisis, these factors have compounded the difficulties faced by the company. Additionally, Ford’s struggle is exacerbated by a series of poor strategic decisions relating to brand positioning and technology choices—all of which have undermined the foundational principles of Fordism and deviated from the notion of “democratic” technological development that once defined the automotive giant.
Puma can’t do it alone
The discontinuation of the Fiesta, which saw over 16 million units sold globally between 1976 and 2023, has left Ford in a precarious position. The Puma alone, which ranked eighteenth in sales last October with 11,104 units and a notable -21% decline, has proven insufficient to offset the company’s attempts to penetrate the premium segment of the market. Furthermore, the launch of the electric Mustang Mach-E has been fraught with difficulties, primarily due to its introduction during the COVID-19 pandemic, coupled with an inability to compete effectively against rival models. On top of this, inefficacious marketing and communication strategies have further complicated Ford’s standings. The straightforward and innovative spirit that characterized Ford’s the C-Max, Kuga, and Mondeo lines has seemingly faded, allowing competitors like Skoda to gain a foothold among consumers. The latest models produced in Cologne, particularly those built on the Volkswagen MEB platform, do little to enhance the brand’s image. In fact, the potential revival of the Capri model risks being perceived as an affront to the legendary coupe that has long been a symbol and icon of Ford’s storied European legacy—leading many to wonder if this once-great automotive titan has indeed reached its endgame.
What strategies should Ford implement to overcome the sales challenges facing the Puma and ensure a successful transition from models like the Fiesta?
E challenges have been insurmountable for Ford. Furthermore, strategic missteps regarding product lineup and brand positioning have compounded their woes, betraying the principles of Fordism and the idea of accessible, ”democratic” car ownership.
Puma can’t do it alone
With the discontinuation of the Fiesta—Ford’s highly successful model that sold 16 million units since its debut in 1976—the company is left relying on the newly introduced Puma. However, even the Puma is struggling under the weight of dwindling sales, with units sold failing to offset the void left by its predecessor. Efforts to capture a more premium market segment have not yielded the expected results, further exacerbated by the underperformance of models like the electric Mustang Mach-E, which has yet to resonate with consumers. The stark realities of modern competition have seen Ford’s marketing strategies falter—once commanding attention with cars like the C-Max and Mondeo, their offerings now feel lackluster compared to rivals like Skoda. New models coming out of their Cologne factory are built on the Volkswagen MEB platform, diluting Ford’s unique identity and legacy in the eyes of the consumer.
As Ford navigates this tempestuous landscape, it raises questions about whether the iconic automaker will adapt its roots to meet the evolving demands of an electrified market. The stark contrast between their former glory and current plight evokes a sense of nostalgia for a bygone era. Questions remain: can Ford redefine itself in a way that resonates with both legacy consumers and a new generation of EV buyers? Or has this once-revered symbol of American industry reached an inevitable conclusion on its journey through the modern automotive landscape?
