Ford sales, market share grow worldwide

Ford Motor Co.'s sales and market share gains in Europe and several other markets outside the United States provide fresh evidence that the company's global reorganization plan is on the right track.

"We now sell more vehicles outside of the U.S. than we do in the U.S.," Jim Farley, Ford's global group vice president of marketing and communications, observed in a Friday interview with the Free Press.

In addition to Europe, he said the company is enjoying successes in Canada, China and Australia.

In Europe, Ford has gained market share in each of the primary 19 countries, except for Spain, over the first half of the year, Farley said. And on Monday, Farley said, Ford Europe is expected to announce that its monthly sales increased for the first time since December.

Even more important, Farley said, is that Ford is gaining market share around the world without increasing incentives and customers are buying Ford vehicles loaded with more options.

"If customers appreciate the product, they tend to buy nicer versions of those products -- they are not commodity products," Farley said.

In Europe, Ford's year-to-date market share through May was 9.2%, up slightly from last year, a significant increase in Europe's primary 19 automotive markets. That has been aided by the recent introduction of the Fiesta and Ka subcompact cars and the Kuga, a small crossover.

The Fiesta is now the second-best-selling vehicle in Europe, behind the Volkswagen Golf, and the Fiesta is Ford's top seller in both Europe and China.

In China, Ford's sales have increased 21% over the first six months of this year. While Ford's total sales in China still lag behind General Motors Co., Ford's sales are outpacing an industry-wide sales increase of 17.7%. Industry sales in China are increasing due to a massive government stimulus package.

Farley said the success of the Fiesta, which comes to the United States in 2010, provides evidence that Ford's strategy to develop cars that can be sold worldwide is paying off.

"Fiesta certainly gives us confidence because it has been well received in mature markets like Australia and new, developing markets like China," Farley said.

The Fiesta was redesigned and introduced last fall in Europe and earlier this year in China. Aside from the Fiesta, Ford plans to begin selling the European version of the Ford Focus compact in the United States next year.

Eventually, Farley said, Ford hopes to sell more than 2 million cars annually that are based on the Focus platform.

Farley said Ford's market share gains in global markets, as well as the United States, prove that Ford's reorganization plan, launched in 2006 by Ford President and Chief Executive Officer Alan Mulally, is working.

"We are seeing the fruits of our labor in Europe and the U.S. and Canada, and we are starting to see it in Asia," Farley said. "But it is just the beginning of the story. We have a long way to go."