MILAN (AP) - Ford Motor Co. on Thursday unveiled 15 new or restyled
vehicles for the European market that it will launch over five years to
revive slumping sales.
While other carmakers are holding back on new car
launches due to tanking European demand, Ford executives announced that
the Detroit carmaker will accelerate new car launches in Europe,
expanding its lineup of SUVs, restyling the hot-selling Fiesta,
redesigning its commercial vehicles and bringing the iconic Mustang
sports across the Atlantic.
Ford Europe CEO Stephen Odell said improvements in
the "brutal" European market are not expected soon. Ford's first-half
European sales dropped 10 percent to 517,094 units, a 7.8 percent market
share for the fifth-largest carmaker in Europe.
Consumer demand for cars in Europe has plummeted as
the sovereign debt crisis has spread to the real economy, cutting
economic production and forcing up unemployment in the region. Vehicle
sales in the European Union dropped 6.8 percent in the first six months
of the year to 6.64 million, from 7.1 million in the same period a year
earlier - raising concerns about factory overcapacity across the
continent.
But Odell said Ford wants "to demonstrate that
despite the economic crisis, we are investing in the future. ... We
want to make a statement loud and clear that we believe there is great
opportunity in Europe."
Ford forecasts that car sales in Europe, including
Russia, will increase by 20 percent in the next five years to 23 million
vehicles.
Many of the new vehicles announced at a gathering
of Ford dealers in Amsterdam, broadcast live on the Internet, are either
restyled versions of existing vehicles or European launches of vehicles
available in other world markets, as the car company accelerates its
global model strategy devised six years ago to confront the economic
crisis in North America.
Ford CEO Alan Mulally said the so-called "One Ford" strategy has helped the automaker post 12 straight quarters of profits.
"In 2017, our European showrooms will feature 15
truly global vehicles," Mulally said, bringing to 71 percent the share
of global models in Europe, compared with 43 percent currently.
Aaron Bragman, an automotive industry analyst at
IHS Automotive, said the strategy worked in helping Ford get through the
crisis in the United States.
"They gave us half the equation," Bragman said.
"The other half that wasn't discussed was what kind of changes are going
to happen at Ford of Europe internally to bring their costs under
control."
That could include looking at the manufacturing
footprint, engineering and staffing. "That will be a much harder look
and it won't be as fun to talk about as new products," Bragman said.
The refreshed lineup includes a second-generation
Kuga midsize SUV to be launched this year, as well as a new Ecosport
compact SUV and the European launch of the larger Edge. The new Fiesta
small car features a sharper exterior design and will be available with
technology aimed at parents of young drivers that sets maximum vehicle
speed or volume for in-car audio.
Ford is targeting the lucrative midsize car market
with a restyled Mondeo, incorporating the carmaker's new inverted
trapezoidal grill. The Mondeo will be available in four-door, five-door,
wagon and a four-door gas hybrid electric version, Ford's first full
hybrid car for Europe. After shrinking over the last decade, the midsize
market has stabilized and Ford is forecasting growth of 15 percent by
2015.
Many of the vehicles will be offered with Ford's
1.0 liter EcoBoost engine that increases performance while achieving
greater fuel efficiency.
