Ford Shows GM the Way to Conquer International Automotive Markets
General Motors may be huge, but it didn’t foster in the European market for sure. So much so, that last week, the American automaker even went on to sell the Opel/Vauxhall unit to the popular French automobile company, the PSA Group. This move explicitly said that GM is not being able to cope up with the European market and that it will be focusing on other ventures than spending time doing something that hasn’t been offering prolific results.
On the contrary, GM’s counterpart Ford has done what General Motors couldn’t. Ford of Europe has thrived on the European land, despite the fact that it faced quite a bit of loss not too long ago. So how did Ford do it? What did it do that GM couldn’t? Let’s find out.
Ford’s Success
Ford faced a staggering $3.1 billion in losses from 2011-14. It was like no major American automobile manufacturer could do well in Europe, but Ford proved everyone wrong. It bounced back with some of the most aggressive restructuring plans. These plans revolved around shuttering manufacturing plants and reinvigorating the company’s entire product lineup. This was all in addition to the massive downsizing the company did in Europe.
These major alterations crafted a better period for the company, a more prolific period. In terms of numbers, Ford of Europe welcomed a record $1.2 billion in profits. Ford had achieved a similar feat after losing $4.6 billion as a consequence of the Great Recession and proved itself once again. Steve Armstrong—Chief Operating Officer of Ford of Europe—said in a statement,
“We’ve constantly worked at trying to improve the Ford business in Europe over many years,”
He rightly emphasized that closing four operating plants is not something to be taken for granted. He said that if Ford of Europe was willing to take such massive measures, it was surely willing to make its place in the European market.
Ford closed plants—never an easy decision, and particularly difficult in Europe.
The Development
Taking such measures was just an aspect of how this American automaker got back on its feet in Europe. It remained quite disciplined with its product development strategies. One that begs a mention is the One Ford strategy which essentially aimed for a single lineup of vehicles around the globe. Since different global regions were now to enjoy a similar line of cars, the development costs fell quite drastically. In the words of Michelle Krebs,
“A European Ford Focus was basically the same as the Ford Focus sold in the U.S. and China,”
GM Went Wrong
There are a lot of areas where General Motors failed to adapt. Its core hesitation was in making major changes that call for taking risks, and thus, it resorted to the same approach as always. The result: It had to pack its bag and leave Europe.
Whether you drive a Ford or GM automobile, you can get its replacement engine or transmission at EngineWorld. We put top-quality used engines and transmission at your disposal. Get one from us by dialing (800) 903-4430, and revamp the performance of your vehicle.
Sources
http://www.autonews.com/article/20170220/OEM/302209923/how-ford-made-it-work-in-europe
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