Ford has revealed a plan to cut its European operating losses by more than 50% over the next two years, targeting a reduction from €1.8 billion in 2023 to under €900 million by the end of 2025. The company’s finance team highlighted that this improvement will be driven by higher-margin commercial vehicles, increased aftermarket revenue and a 7% improvement in factory efficiencies achieved through lean manufacturing initiatives in Cologne and Valencia.

Central to Ford’s overhaul is the expansion of its Ford Pro commercial vehicle division, which now accounts for 30% of European van sales following the launch of 150 fully electric Transit Custom vans in 2024. Ford has also deepened its alliances, signing a joint manufacturing agreement with Volkswagen to build 200,000 medium-size electric vans over the next three years, and securing a technology-sharing deal with Daimler to co-develop battery systems, expected to reduce per-vehicle battery costs by 15%.

To support profitability, Ford has streamlined its European dealer network, reducing showrooms from 1,400 locations in 2022 to 900 by mid-2024, and consolidated corporate office space, cutting property expenses by €120 million annually. Fixed-cost savings of €350 million have been realized through headcount reductions of 10%, with targeted reinvestments into digital sales platforms projected to boost online order penetration to 25% by 2026.