The pound/euro exchange rate and the rising price of fuel are two of the biggest challenges for car companies in the UK.
Ford of Britain chief Mark Ovenden said the cost of filling up an average family car approaching GBP100 presents a “psychological challenge”.
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He added: “It eats into disposable income which then affects purchasing decisions, but I don’t really see what the government can do about it. It is in a very difficult position and money has to be raised somehow.”
The biggest impact, though, is the pound/euro exchange rate which Ovenden said makes it a challenge for any carmaker to achieve profitability in the UK – not just Ford.
His answer to these problems? “Deal with it.”
He said that he and other car companies have been watching what happened at Renault UK which announced it is dropping a number of models and cutting back its dealer network.
“We all have to look at how we do our business although our situation is very different because of what Ford means to Britain and what Britain means to Ford. We have to live with what’s going on now and react accordingly.
“We can’t take a view on what the exchange rate might be at some point in the future. The same with the cost of fuel – we have to make and sell cars that are more efficient which is what we are doing with technologies such as Ecoboost.”
Despite these challenges, Ford has made a strong start to the year. Ovenden said Fiesta sales were strong while the new Focus was gaining traction in the showrooms (a year after launch).
“The really good news is that we are growing across the board in retail and fleet. We have also got some great new products with the launch in Geneva of the new B-Max and the unveiling of the latest Transit.”
