Automotive News Europe - April 2020 - 10

AUTOMOTIVE NEWS EUROPE

Q&A

Reset & redesign
Ford exec takes big steps on path to making European arm sustainably profitable

F

ord's intensified efforts to turn
around its money-losing European
division including the closure or selloff of six plants and the elimination of
more than 12,000 jobs. The cost-cutting
push appears to be working: Ford of Europe posted a small profit of $21 million
(18.7 million euros) in the final quarter
of 2019. Leading the reorganization is
Stuart Rowley, who started last April
after serving as chief operating officer
of Ford's North American arm. Prior to
that he was chief financial officer at Ford
of Europe as well as Volvo. He spoke to
Automotive News Europe Correspondent
Nick Gibbs about the challenges ahead.
What does a healthy automaker look
like in Europe right now? How close is
Ford to achieving this?
A healthy automaker has strong products that appeal to its customers. With
strong products come good returns. Our
objective is a 6 percent margin. We are
not there. We were effectively a breakeven business last year, which was a significant improvement on 2018. So it's a
step in the right direction. But if you peel
that business back, you will find some
very strong businesses underneath it.
Could you give an example?
Top of that list is commercial vehicles.
We have appointed a general manager,
Hans Schep, and he has P&L [profit and
loss] accountability. We are reducing our
personnel levels by about 20 percent a
year, but at the same time we have more
than doubled the resources dedicated to
commercial vehicles.
How far along are you with staff cuts?
Our Reset and Redesign program for 201920 includes a staff reduction of about
10,000 people across Western Europe plus
2,500 in Russia by the end of this year. By
the end of January, we were more than
halfway through that. The Russian piece is
done. More than half of the cuts are in Germany. It's white collar, it's blue collar, it's
agency employees. It's at all levels of the
organization. Executive levels have been
taken down by almost 40 percent.

10

www.autonewseurope.com

Meet the boss
❚ NAME: Stuart Rowley
❚ TITLE: Ford of Europe

President

❚ AGE: 52
❚ MAIN CHALLENGE:

Electrifying the U.S. automaker's European lineup.

What CO2 level must you reach to
avoid EU fines and which models are
you relying on most to get you there?
About 98 grams per kilometer is the target for this year for passenger cars. We
think of it like a seesaw. We discontinued
a number of vehicles that had relatively
poor CO2, such as the C-Max [minivan]
and Ka+ [minicar]. Then we launched the
Kuga and Puma SUVs. The Kuga plug-in
hybrid is important because we get supercredits for that. Other important products on the right side of the seesaw are
the Mustang Mach E, the Explorer [large
SUV] plug-in hybrid and the Transit Custom Tourneo plug-in hybrid [van].
The Puma small SUV is going to be
a significant seller, but it's on the
wrong side of that seesaw, isn't it?
Only marginally. The order take on the
mild hybrid version is extremely high.
And, of course, we will put mild hybrid
in the Fiesta and Focus. We are seeing
strong demand for electrified products.
The Mustang Mach E [electric SUV] will
have a relatively small impact this year

but in 2021 we have a full year of sales. If
anything would keep me awake at night,
it would be wishing we had more supply.
How many of the Mach E's projected
50,000 annual global sales do you
need to sell in Europe to reach your
2021 EU emissions target?
We will take a good proportion of those. I'm
not going to quote sales numbers. I actually think we are going to have more demand
globally, so it's going to be a tussle. It's not
a compliance play. It's a great product and
it's well positioned in the market. It's going
to be profitable for us in Europe. The challenge is the charging infrastructure.
Will you have to pay EU fines?
Something will have to go wrong for us
to pay fines.
The Kuga is currently Britain's cheapest plug-in hybrid in terms of lease
rates, suggesting it's being discounted. Are you going to take a hit on that
car in terms of profitability?
We are positioning the plug-in hybrid to
assist our compliance because we won't

APRIL 2020


http://www.autonewseurope.com

Automotive News Europe - April 2020

Table of Contents for the Digital Edition of Automotive News Europe - April 2020

Contents
Automotive News Europe - April 2020 - Intro
Automotive News Europe - April 2020 - Cover1
Automotive News Europe - April 2020 - Cover2
Automotive News Europe - April 2020 - 3
Automotive News Europe - April 2020 - Contents
Automotive News Europe - April 2020 - 5
Automotive News Europe - April 2020 - 6
Automotive News Europe - April 2020 - 7
Automotive News Europe - April 2020 - 8
Automotive News Europe - April 2020 - 9
Automotive News Europe - April 2020 - 10
Automotive News Europe - April 2020 - 11
Automotive News Europe - April 2020 - 12
Automotive News Europe - April 2020 - 13
Automotive News Europe - April 2020 - 14
Automotive News Europe - April 2020 - 15
Automotive News Europe - April 2020 - 16
Automotive News Europe - April 2020 - 17
Automotive News Europe - April 2020 - 18
Automotive News Europe - April 2020 - 19
Automotive News Europe - April 2020 - 20
Automotive News Europe - April 2020 - 21
Automotive News Europe - April 2020 - 22
Automotive News Europe - April 2020 - 23
Automotive News Europe - April 2020 - 24
Automotive News Europe - April 2020 - 25
Automotive News Europe - April 2020 - 26
Automotive News Europe - April 2020 - 27
Automotive News Europe - April 2020 - 28
Automotive News Europe - April 2020 - 29
Automotive News Europe - April 2020 - 30
Automotive News Europe - April 2020 - 31
Automotive News Europe - April 2020 - 32
Automotive News Europe - April 2020 - 33
Automotive News Europe - April 2020 - 34
Automotive News Europe - April 2020 - 35
Automotive News Europe - April 2020 - 36
Automotive News Europe - April 2020 - 37
Automotive News Europe - April 2020 - Cover3
Automotive News Europe - April 2020 - Cover4
https://www.nxtbook.com/nxtbooks/crain/ane_3495899034GGYMR
https://www.nxtbook.com/nxtbooks/crain/ane_9320328934TYHUG
https://www.nxtbook.com/nxtbooks/crain/ane_7900358122IMGRO
https://www.nxtbook.com/nxtbooks/crain/ane_3330853029TRYKS
https://www.nxtbook.com/nxtbooks/crain/ane_7603992185JJOMR
https://www.nxtbook.com/nxtbooks/crain/ane_9952380791TKMND
https://www.nxtbook.com/nxtbooks/crain/ane_5963340912YTMVC
https://www.nxtbook.com/nxtbooks/crain/ane_9085020498DOMCR
https://www.nxtbook.com/nxtbooks/crain/ane_7569349232HGWST
https://www.nxtbook.com/nxtbooks/crain/ane_8394843321MIRSB_supp
https://www.nxtbook.com/nxtbooks/crain/ane_8394843321MIRSB
https://www.nxtbook.com/nxtbooks/crain/ane_7830554918KRPMY
https://www.nxtbook.com/nxtbooks/crain/ane_risingstars2019
https://www.nxtbook.com/nxtbooks/crain/ane_3258093390ITWPM
https://www.nxtbook.com/nxtbooks/crain/ane_5392044910YTVMM
https://www.nxtbook.com/nxtbooks/crain/ane_4903750143RTEM
https://www.nxtbook.com/nxtbooks/crain/ane_8945903036KOPLM
https://www.nxtbook.com/nxtbooks/crain/ane_4950209328USKEJ
https://www.nxtbook.com/nxtbooks/crain/ane_7390430940MNSWA
https://www.nxtbook.com/nxtbooks/crain/ane_7390430940MNSWA_v2
https://www.nxtbook.com/nxtbooks/crain/ane_8230453971TKYMU
https://www.nxtbook.com/nxtbooks/crain/ane_7837465743WEMSH
https://www.nxtbook.com/nxtbooks/crain/ane_7833672917YBMPD
https://www.nxtbook.com/nxtbooks/crain/ane_9088748726YCPLE
https://www.nxtbook.com/nxtbooks/crain/carcutaways_2018
https://www.nxtbook.com/nxtbooks/crain/ane_8597213481CWFVW
https://www.nxtbook.com/nxtbooks/crain/ane_2482974147IFSFU
https://www.nxtbook.com/nxtbooks/crain/ane_8305986869KNPMS
https://www.nxtbook.com/nxtbooks/crain/ane_0614201113IJPIA
https://www.nxtbook.com/nxtbooks/crain/ane_8994679032WJPLU
https://www.nxtbook.com/nxtbooks/crain/ane_5968336988ILNYJ
https://www.nxtbook.com/nxtbooks/crain/ane_1997227797LUMBD
https://www.nxtbook.com/nxtbooks/crain/ane_4215263985SSIAG
https://www.nxtbook.com/nxtbooks/crain/ane_4215263985SSIAG_v2
https://www.nxtbook.com/nxtbooks/crain/ane_9685235478RMUTM
https://www.nxtbook.com/nxtbooks/crain/ane_7982651231IRTQN
https://www.nxtbook.com/nxtbooks/crain/ane_9762539875TSICT
https://www.nxtbook.com/nxtbooks/crain/ane_5689715482IENCS
https://www.nxtbook.com/nxtbooks/crain/ane_3746259086NJIUT
https://www.nxtbook.com/nxtbooks/crain/ane_3746259086NJIUT_supp
https://www.nxtbook.com/nxtbooks/crain/ane_6647392641QIRBD
https://www.nxtbook.com/nxtbooks/crain/ane_1850001440JWORG
https://www.nxtbook.com/nxtbooks/crain/ane_5574194871YIURI
https://www.nxtbook.com/nxtbooks/crain/hyundaisupp2017
https://www.nxtbook.com/nxtbooks/crain/ane_4475234219PTTGU
https://www.nxtbook.com/nxtbooks/crain/ane_4475234219PTTGU_supp
https://www.nxtbook.com/nxtbooks/crain/ane_7756553946DFERT
https://www.nxtbook.com/nxtbooks/crain/ane_7565421232JJRPR
https://www.nxtbook.com/nxtbooks/crain/ane_2587741235HJMYR
https://www.nxtbook.com/nxtbooks/crain/ane_4125411029LPFDS_supp
https://www.nxtbook.com/nxtbooks/crain/ane_8565758324ZKFSK
https://www.nxtbook.com/nxtbooks/crain/ane_7578531577POYML
https://www.nxtbook.com/nxtbooks/crain/ane_9343287619LWSSX_supp
https://www.nxtbook.com/nxtbooks/crain/ane_8578612319JPCLK
https://www.nxtbook.com/nxtbooks/crain/ane_9856230144DRBGW
https://www.nxtbook.com/nxtbooks/crain/ane_5895292377LGMAK
https://www.nxtbook.com/nxtbooks/crain/ane_4859913266JPCLG
https://www.nxtbook.com/nxtbooks/crain/ane_risingstars2016
https://www.nxtbook.com/nxtbooks/crain/ane_3403462342JDFLS
https://www.nxtbook.com/nxtbooks/crain/ane_4687134234ASBSE
https://www.nxtbook.com/nxtbooks/crain/ane_4687134234ASBSE_supp
https://www.nxtbook.com/nxtbooks/crain/ane_1324623495GSAPP_supp
https://www.nxtbook.com/nxtbooks/crain/ane_1324623495GSAPP
https://www.nxtbook.com/nxtbooks/crain/ane_7076604777NWYOQ
https://www.nxtbook.com/nxtbooks/crain/ane_2309428300SPGDS
https://www.nxtbook.com/nxtbooks/crain/ane_1982756473HYRDS
https://www.nxtbook.com/nxtbooks/crain/ane_2057203582WPGHS
https://www.nxtbook.com/nxtbooks/crain/ane_9635969361GPSUS
https://www.nxtbook.com/nxtbooks/crain/ane_2983710392PASLY
https://www.nxtbook.com/nxtbooks/crain/ane_9274028472PSHGR
https://www.nxtbook.com/nxtbooks/crain/ane_7844698254RFBML
https://www.nxtbook.com/nxtbooks/crain/ane_3566392684GBCRP
https://www.nxtbook.com/nxtbooks/crain/ane_risingstars2015
https://www.nxtbook.com/nxtbooks/crain/ane_7746982457HCTBV
https://www.nxtbook.com/nxtbooks/crain/ane_8466734982WRVBP
https://www.nxtbook.com/nxtbooks/crain/ane_8944557823RVMTM
https://www.nxtbook.com/nxtbooks/crain/ane_4663872983MNCFG
https://www.nxtbook.com/nxtbooks/crain/ane_8935549241RNBCW
https://www.nxtbook.com/nxtbooks/crain/ane_9566378724RTBNK
https://www.nxtbook.com/nxtbooks/crain/ane_1598742103YTHGS
https://www.nxtbook.com/nxtbooks/crain/ane_6449829678HCRRM
https://www.nxtbook.com/nxtbooks/crain/ane_8433098135TBSPR
https://www.nxtbook.com/nxtbooks/crain/ane_1988430922ECNBM
https://www.nxtbook.com/nxtbooks/crain/ane_4635855310KGBRY
https://www.nxtbook.com/nxtbooks/crain/ane_7735666492FWXZT
https://www.nxtbook.com/nxtbooks/crain/ane_4498823511WNCGH
https://www.nxtbook.com/nxtbooks/crain/ane_8944367792DCMBT
https://www.nxtbook.com/nxtbooks/crain/ane_2553977513GBCWD
https://www.nxtbook.com/nxtbooks/crain/ane_1665498825FVBCR
https://www.nxtbook.com/nxtbooks/crain/ane_4667099235GBWXD
https://www.nxtbook.com/nxtbooks/crain/ane_7844098824RBCKL
https://www.nxtbook.com/nxtbooks/crain/ane_8944652092BCTRF
https://www.nxtbook.com/nxtbooks/crain/ane_5421893221KYPFV
https://www.nxtbook.com/nxtbooks/crain/ane_8944763097HBPSR
https://www.nxtbook.com/nxtbooks/crain/ane_7589445092GBMCT
https://www.nxtbook.com/nxtbooks/crain/ane_8971256849SUEQH
https://www.nxtbook.com/nxtbooks/crain/ane_risingstars2013
https://www.nxtbook.com/nxtbooks/crain/ane_7485663908JMPSU
https://www.nxtbook.com/nxtbooks/crain/ane_8946673098UVPLS
https://www.nxtbook.com/nxtbooks/crain/ane_1099378253HVLPH
https://www.nxtbook.com/nxtbooks/crain/ane_8946773099BHWDC
https://www.nxtbook.com/nxtbooks/crain/ane_8944609227HCTRP
https://www.nxtbook.com/nxtbooks/crain/ane_4899309227HWULX
https://www.nxtbook.com/nxtbooks/crain/ane_7800409927YNCBD
https://www.nxtbook.com/nxtbooks/crain/ane_4667330227HCQWE
https://www.nxtbook.com/nxtbooks/crain/ane_8933092287HCMPL
https://www.nxtbook.com/nxtbooks/crain/ane_975313566GYNDE
https://www.nxtbook.com/nxtbooks/crain/ane_7550448339HVNCN
https://www.nxtbook.com/nxtbooks/crain/autonews_europe_201111
https://www.nxtbook.com/nxtbooks/crain/ane_201109
https://www.nxtbook.com/nxtbooks/crain/ane_frankfurt2011_pocketguide
https://www.nxtbook.com/nxtbooks/crain/ane_201106
https://www.nxtbook.com/nxtbooks/crain/ane_20110222
https://www.nxtbook.com/nxtbooks/crain/ane_20100922
https://www.nxtbook.com/nxtbooks/crain/ane7844055693GVCCB
https://www.nxtbook.com/nxtbooks/crain/ane2662304498QXXVB
https://www.nxtbook.com/nxtbooks/crain/ane7510059135PBCCV
https://www.nxtbook.com/nxtbooks/crain/ane5600731098XCVXB
https://www.nxtbook.com/nxtbooks/crain/ane7985331807SCBCS
https://www.nxtbook.com/nxtbooks/crain/autonews_europe_20081208
https://www.nxtbook.com/nxtbooks/crain/autonews_europe_nxtd
https://www.nxtbookmedia.com