Ford Launches Major Product Push in Europe

Ford Motor Co. is rolling out a broad array of redesigned and new-to-Europe models in the region over the next few years. The company aims to cash in on an expected 20% growth in that market over the next five years while holding down costs.

Ford CEO Alan Mulally sees "significant opportunity for profitable growth" in the region in spite of Europe's economic crisis and slumping auto market. But Ford of Europe Chairman Stephen Odell concedes those factors leave the potential "clouded" for now.

The company has said it expects to lose more than $1 billion in the region this year.

Ford hopes fresh models will boost its flagging sales in the region. Later this year in Europe the company is introducing redesigned versions of its Kuga compact crossover vehicle, Fiesta subcompact, Mondeo midsize car, Transit commercial van and Tourneo Connect passenger van.

Ford intends to bolster its European lineup and save money by importing models it already makes elsewhere. The next-generation Ecosport small SUV which will be produced in Brazil, China, India and Thailand will arrive in Europe in early 2014.

The company also plans to introduce the Canada-built Edge midsize crossover vehicle and next-generation American-made Mustang sport coupe in Europe. Ford didn't disclose debut dates or sales goals.

The company has said it must restructure in Europe to align its capacity with demand, although it has not disclosed how it plans to do so. Ford is operating at just 63% of its capacity there, according to Morgan Stanley. Analysts note that importing vehicles could give the company leeway to close a factory.

Ford also is overhauling its entire Transit delivery van lineup, beginning with a new Transit Custom and Tourneo Custom passenger van variant this year and the two-ton global Transit van debuts in 2013. The company plans to add the Transit Courier, a small B-platform commercial van, in Europe in 2014.

Ford expects Europe's commercial vehicle market to expand more than 30% to nearly 4 million units per year by 2017, led by 70% growth in small vehicles. The company predicts its expanded lineup will generate annual CV sales of 500,000 units by 2016, thus boosting its share of that market to 13% from 9.3% currently.