Ford, a major player in the automotive industry, is facing challenges as the market rapidly transitions to electric vehicles (EVs). After losing its European boss to Volkswagen, Ford is reorganizing its business to regain momentum. Let’s delve into the details of this transformation.
The Leadership Changes
Ford’s European top executive, Martin Sander, recently left the company to join Volkswagen. Sander played a crucial role in launching Ford’s first EV build in the EU—the electric Ford Explorer. The Explorer EV production began this month at Ford’s dedicated EV center in Cologne, Germany. However, Sander’s position will be eliminated as Ford streamlines its European headquarters. Starting July 1, 2024, Ford will have only four directors in Cologne, down from the previous nine.
The Struggle to Stay Afloat
German auto news outlet Automobilwoche reports that Ford’s EU leadership changes come as the automaker grapples with staying competitive. The success of the new electric Explorer is critical; otherwise, Ford could potentially abandon its car business in Europe in the medium term. With approximately 98% of profits coming from the US, Ford is cautiously navigating the European market.
The Road Ahead
Ford’s second EV, based on Volkswagen’s MEB platform, is expected to be revealed soon. The company plans to begin production on this second MEB-based EV later this year, following the Explorer’s launch. In the US, Ford ranks as the second best-selling EV brand (excluding combined Hyundai and Kia sales). The Mustang Mach-E and the F-150 Lightning contribute significantly to Ford’s EV success. However, Tesla’s Cybertruck sales are rising, and new EV trucks are entering the market.
Ford’s reorganization aims to address the challenges posed by the EV shift. As the automotive landscape evolves, Ford must adapt swiftly to secure its place in the electrified future. The Explorer EV represents a pivotal moment for the company, and its success will determine Ford’s trajectory in Europe.
