The third biggest auto maker in the world, Ford (F, Financial), is trying to raise its sales numbers in the European continent. In the U.S., Ford cars sell like hot pancakes, but the scenario is a bit different in Europe where Volkswagen (VLKAY, Financial) takes the usual lead. As emission norms are being made stringent both in U.S. and Europe, auto makers are also launching plug-in hybrid versions of U.S. sold cars in Europe to keep their European sales growing in the long term. Ford is also pushing the launch of the Fusion hybrid in Europe, and this debut is being made almost three years after the model has been launched in the U.S. The Blue Oval is not very confident of sales of hybrids looking up in the European Union and that’s probably the reason behind the delayed launch date. Let’s find out the current scenario in Europe with respect to hybrids, how the competitors are doing and what Ford’s future plans are for the EU. Here’s the total story.
The demand for plug-ins in Europe
In Europe consumers are rather hesitant to buy plug-in hybrid versions, which is contrary to what is usually seen in the U.S. Through the first half of 2014, the Mitsubishi (MTU, Financial) Outlander PHEV was the best-selling plug in hybrid among European consumers with 8,593 units sold which looks small compared to 20,800 Ford Fusion hybrids sold in the U.S. during the similar period. These numbers clearly suggest that there is a dearth in demand for hybrids in Europe. Toyota (TM, Financial), the global market leader, sold 4,265 Prius cars with hybrid and plug-in powertrains, while Volvo (VOLVY, Financial) sold 3,233 units of its V60 plug-in-hybrid.
Nevertheless, automotive giants are trying to create their footprint in Europe by launching plug-in models this year. Volkswagen has recently launched the Golf GTE plug-in hybrid in Europe, and it has already hit the dealer lots. During an interview with Auto News, Uli Koesters, Ford’s largest vehicle director in Europe expressed his skepticism surrounding this form of auto hybrid technology picking up in Europe sooner than expected. He stated – “I believe the plug-in take-up in Europe is not quite as ready as some people would like to think.”
Ford to make its debut
Ford is likely to take a page out of the Volkswagen playbook by offering plug-in hybrids in Europe. Despite the low demand for hybrids in Europe, Ford seems to be actively considering plug-in hybrids and will immediately respond if the need arises in the European automotive market.
Irrespective of lack of demand in Europe for hybrids, Ford maintains its stand regarding this launch. Koesters commented, “… it is clearly a technology that can do a lot better at significantly reducing fuel consumption and that’s why we are actively looking at it.”
The automaker said that it was incorporating the technology in the new Mondeo which happens to be a sister model of the Fusion that’s currently selling in the U.S.
Analysts’ are of the opinion that Ford is briskly taking such a step to keep its growth pace steady in Europe where rivals like Volkswagen have been ruling the auto market. Also, as Volkswagen has launched the plug-in variant of its Golf compact hatchback in Europe and will introduce the plug-in variant of the new Passat midsize sedan in 2015, Ford has decided to bring out this model to compete with these Volkswagen models.
Final word
Ford is thinking of expanding into the hybrid segment of Europe with its initial launch of Mondeo plug-in-hybrid version which will obviously compete with Volkswagen Golf GTE model. All eyes are stuck to this piece of information, and only sales figures in the pursuant quarters can speak of the success rate of the new Ford Mondeo in the European market. Until then, let’s stay tuned and keep watching how Ford carves a niche for itself in the hybrid segment of the European Union.
