Ford Attempting to Lower Fleet Sales in Europe for Higher Profit Margins

As we have learned, it is hard to sell any car at the moment in Europe with sales falling to their lowest level in 20 years, but FordFordUnited Kingdom, 1909 > present33 models
3718 photos
5 videos
plans to reduce its fleet sales to rental car companies in Europe in favor of more private sales. Even if it results it fewer total sales, private sales yield higher profit margins that fleet sales.

Currently, about 17% of Ford’s European annual sales go to vehicle fleets, and it hopes to reduce that to 13% by 2015.

Ford is bringing several new cars to Europe to facilitate the change, including the MondeoFord Mondeo 5United Kingdom, 2013 > present79 versions
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next year and upcoming EcoSportFord EcoSportUnited Kingdom, 2012 > 20126 photos
compact crossover.

In the short term, Ford will certainly incur more losses in Europe. Deliveries were down 2.2% to 99,400 cars in May, which is better than the 5.9% fall in the general European car market. It forecasts a $2 billion loss for 2013, compared to a $1.75 billion loss in 2012. However, it believes that there may be a rebound in 2014.

"We're expecting some improvement next year,” said Roelant de Waard, Ford Europe Head of Sales.

European Auto Sales Have Worst May Since 1993

Source: Automotive News Europe