Ford Abandoning Minicar Market in Europe

Ford Motor Co. is moving out of Europe’s entry-level minicar market by upsizing its smallest cars. The target: More affluent buyers who value a small and efficient vehicle but also want premium extras they actually use.

Ford tells Automotive New Europe the strategy aims to attract customers that “don’t want to pay for features that are not relevant.” The company will try out the new approach this autumn with the Ka+, a subcompact version of B-segment minicar that is about 12 inches longer and has four doors rather than two.

The Ka+ will debut in Europe at €10,000 ($11,200), where it will compete with such models as the Dacia Sandero. ANE says the €10,000-€13,000 subcompact market represents about 400,000 sales per year, or 13% of the B-segment overall.

The Ka+ will be produced in India but has been tweaked with “significant” enhancements to handling and assembly quality, according to Ford. The company plans to take the same tack with its next-generation B-Max mini-MPV and Indian-made EcoSport mini-SUV.