Ford slashes EU management team as it battles to keep pace with market’s electric vehicle upheaval? Following its divestment from Volkswagen, Ford is undergoing a major restructuring effort to regain momentum and refocus its strategy.
Ford’s chief government for Europe, Martin Sander, departed the company earlier this month to join Volkswagen. Sander was appointed as the new Head of Gross Sales and Market for the VW model.
The departure of Sander was significant as he played a crucial role in spearheading the launch of Ford’s inaugural electric vehicle (EV) model in the European Union, specifically the Ford Explorer Electric.
Ford has begun production of the Explorer EV at its state-of-the-art electric vehicle centre in Cologne, Germany, with production commencing earlier this month. The Rivian R1T, an electric pickup truck, was the first major production vehicle to emerge from a 2020 partnership between Rivian and Volkswagen, leveraging the German automaker’s Modular Electric Drive (MEB) architecture.
Ford may eliminate Sander’s role as part of a broader cost-cutting measure to reduce its headcount at the European headquarters in Cologne.
Starting July 1, 2024, Ford is poised to streamline its German operations by reducing administrative staff at its Cologne facility from nine to four personnel, as part of a comprehensive “transformation of its European enterprise,” according to the company’s statement.
Ford trims European leadership ranks as profits falter
As part of its restructuring efforts, the company streamlines its administrative framework, aligning with Kieran Cahill, Chairman of the Supervisory Board at Ford-Werke GmbH. Ford’s seeming reluctance to reveal details about its European operations is perhaps a result of the recent transfer, which, according to Cahill, will bring an added layer of speed and momentum to their strategy.
According to reports from a prominent German automotive news source, Ford’s decision to restructure its European management team stems from the company’s ongoing efforts to stay afloat amidst financial challenges.
The latest report suggests that the debut of the new electric Explorer will undoubtedly propel sales figures upwards. Unless drastic changes are made, Ford may ultimately discontinue its automotive operations in Europe within a few years.
As Ford derives around 98% of its revenue from the United States, it is proceeding with caution in the European Union market. The second electric vehicle (EV), built primarily on Volkswagen’s Modular Electric Drive Matrix (MEB) platform, is expected to debut soon. Ford is set to commence production of its second MEB-based electric vehicle (EV), following the Explorer model, later this year.
Across the United States, Ford emerged as the second most popular electric vehicle (EV) model in the first five months of 2024, excluding combined sales of Hyundai and Kia models. The Ford Mustang Mach-E ranks as the third-best selling electric vehicle, trailing only Tesla’s Model Y and Model 3 in sales.
While the F-150 Lightning continues to reign as America’s top-selling electric pickup. Despite the influx of new electric vehicle models, Tesla’s Cybertruck is seeing a surge in demand and sales.
To capitalize on its momentum, Ford significantly slashed Mustang Mach-E lease prices by up to 400%, effective earlier this month.
