Ford UK is expecting two of its best years in 2008 and 2009 with a fresh product line-up and booming retail sales.
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March, with sales of 83,600 including LCVs, was the company’s best month since the switch to twice-yearly registration plate [tag] changes in 1999, said chairman and managing director Roelant de Waard.
With demand booming, the real challenge is manufacturing capacity, de Waard said at the launch of the Kuga crossover.
“We have spent the last five years establishing flexible manufacturing in Europe and now we can match supply to demand.
“Getting that balance between supply and demand is good for manufacturers, dealers and customers. It means no distress marketing which means better residual values.”
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By GlobalDataIt also means less stock pressure on dealers.
Another challenge will be increasing diesel engine production.
“We still see diesel as the best way to meet C02 targets,” he said.
De Waard expects Ford to grow its market share in 2008 with absolute volume rising towards 450,000, including LCVs, and the overall UK market falling slightly.
In 2007, Ford sold 442,017 cars and LCVs, according to Society of Motor Manufacturers and Traders (SMMT) figures.
In 2009, when the redesigned Ka [sharing platform and Polish factory with Fiat’s 500] is launched, “everything will be new and we will have full availability of all derivatives,” said de Waard.
“Ka is an interesting one for us – it almost has a life of its own with a very loyal customer base,” he said.
Sales in 2006 and 2007 were around 27,000, accounting for around 20% of its segment.
Generally, the decision to move out of short cycle rental business is paying off.
“We’ve doubled retail sales of Mondeo year-on-year. These are people buying cars with their own money,” said de Waard.
“Our S-Max strategy of offering only well-equipped versions with limited options is working very well – 66% of sales are retail and 60% are conquest from other brands.”
The Kuga small SUV, which goes on sale in June, is built at Saarlouis in Germany where capacity has been increased from 290,000 to 330,000 on three shifts.
Annual production is set at 65,000 and, with Focus at full demand, that’s unlikely to change.
UK availability is expected to be between 6,000 and 7,000 in a full year.
“We’re limited by Saarlouis capacity,” said de Waard.
Which probably isn’t a bad thing – three-year/60,000 mile residual values are predicted at 47%, which is better than the popular Honda CR-V rival.
The UK-specificatioj Kuga will be available in Zetec and Titanium trim with manual-only two-litre TDCI (turbodiesel) power from launch and is priced from GBP20,500.
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