Ford Warns: Western European Car Manufacturing at Risk

The future of western European car manufacturing is at risk unless the industry takes steps to improve its international competitiveness, a senior Ford executive has warned.

“The fact of the matter is, these days it is not a very competitive place to do business,” said Mark Fields, executive vice president of Ford’s Premier Automotive Group.

An Automotive News Europe report describes how low cost labour and the emerging pool of engineers in places such as China, has made car manufacturers seriously consider where they will produce their cars in the future. Mr Fields also noted that the European Union has made a good start, but suggested EU regulations would add 5,000 euros (£3474) to the price of car within two or three years.

“Unless we as a continent have a very defined industrial framework and industrial policy…we will lose competitiveness step by step over time. It is not going to happen in a huge leak. It will appear more like a dripping faucet,” he added. “The European automotive industry is simply not profitable in its home market,” Mr Fields continued, noting nearly three quarters of global automotive products are made in the US.

Ford’s Premier Automotive Group includes Volvo, Jaguar, Aston Martin and Land Rover. Jaguar last year cut 1,150 jobs in a bid to reduce losses that could last until 2007 or later. Land Rover cut output by some 15,000 units due to the weak dollar and flat demand.