Managing capex now a priority for OEMs in stagnant Europe

In March 2025, Ford confirmed that European production for its Focus hatchback will end from November, joining other popular offerings like the Fiesta, axed in 2023. Despite customers’ eager consumption of these models—the Fiesta and Focus are two of the biggest sellers in Ford’s history—the company is strategically aligning itself firmly to SUVs, pick-ups, and their electric variants.

Back in September, Ford Chief Executive Jim Farley told Car Magazine that his company was “getting out of the boring-car business and into the iconic-vehicle business.” He added that the margins for smaller, more affordable cars simply aren’t compelling enough anymore. The company that created the Model T apparently no longer wants to make high-volume cars.

The F-150 pick-up might demonstrate why Ford is pivoting to larger models. Not just the best-selling vehicle in the US for several years running, the automaker generated a US$14,000 profit margin per vehicle sold in 2022, according to Barron’s. This figure is likely to be even higher in 2025. But is this success transferable to other markets, and could compacts and mid-sized sedans be a dying breed in Europe?