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INTERVIEWS INSIDE FORD
14 AUGUST 2019 AUTOCAR.CO.UK 57
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We’re number one brand
and that feels right. It’s far
too big to give up
a
Stuart Rowley: Euro chief speaks
FORD’S TOP MAN in Europe, Stuart Rowley, loses
no t i me i n a c k now le d g i n g t h at t he Blue O v a l ne e d s
a serious, long-term boost on this side of the pond.
A Ford of Br it a i n r e c r u it of 30 y e a r s’ s t a nd i n g w ho
has worked in most of the company’s key global
operations, Rowley was drafted back to the UK
last October “to help right the ship” after a bout of
s e r iou s lo s s e s. T h at mu s t h av e gone w e l l: t h i s A pr i l
he was appointed FoE president, charged with
r e or ga n i si n g t he bu si ne s s i n w ay s t h at h a d w ork e d
in the US but not been tried here before.
R i g ht i n g t he sh ip i nv ol v e d r apid , he a d l i ne -
grabbing stuff like quitting most of the Russian
manufacturing business and closing the Bridgend
engine plant, and the giant Ford of Britain office
building in Warley, Essex, was put up for sale.
Muc h of t h at h a s b e e n a c h ie v e d or at le a s t a g r e e d ,
and recent business has been healthier for it. Now
it ’s t i me for t he bu si ne s s r e or ga n i s at ion t o show it s
potential in volumes and profits.
“A w h i le a go w e l a id out 2 0 y e a r s of t he
company’s business history,” says Rowley, “and it
was amazingly instructive. It showed that while
we’d had good years and bad, our market share
had stayed reasonably stable. But we’d only been
marginally profitable, not even returning the cost
of our capital. This isn’t acceptable for a $30bn
business, especially as conditions get tougher and
electrification beckons. We needed a different
strategy, a different operating model.”
The plan was simple: split the business three
ways, into a thriving commercials operation
critique Ford in Europe, I’d say we were late to
too many parties and stayed too long after they’d
finished. Our new Puma – great looking, practical
a nd c o s t- e f fe c t i v e t o de si g n a nd s e l l – i s pa r t of t he
answer. It leverages our strengths and history.”D o e s a l l t h i s c h a n ge t h r e at e n Ford’s le a d i n g
p o sit ion i n Br it a i n , u nbr ok e n si nc e t he Tr a n sit ’s
arrival in 1965 and the Fiesta’s in 1976? Rowley
says not: “We may not be number one OEM here,
but we’re number one brand and that feels right.
It’s far too big to give up; Ford will never be a niche
player. But we’ve got to be smarter. What portfolio
w i l l w e ne e d t o k e e p w i n n i n g i n t he s e c ond h a l f of
the 2020s? That’s what we’re planning right now.”
Pa r t s of t h at pl a n a r e a l r e a d y c le a r. Ford w i l l
build 600,000 EVs on new partner VW’s MEB
pl at for m ov e r si x y e a r s f r om 2 02 3. (“ Wou ld n’t it b e
great,” he says, “if our MEB car was the best of the
lot?”). And FoE is working on a compact SUV for
the mid-2020s, a project initially called ‘C Puma’
until Rowley changed it. “If we use that name, we’ll
do a not he r P u m a i n fou r y e a r s’ t i me ,” he s ay s. “It
might not be relevant. Let’s put more time into
understanding what our customers need by then.” ◊
Puma crossover works
to the company’s
strengths, says Rowley
(Ford i s Eu r op e ’s m a rk e t le a de r w it h a 30% sh a r e),
a passenger car business (Ford has the first and
second UK best sellers but earnings are low) and a
sm a l l , l i v e l y i mp or t op e r at ion (Mu s t a n g i s t he hu ge
success, but Ford has big plans for the Explorer, for
ne x t y e a r ’s Mu s t a n g-i n f lue nc e d E V c r o s s ov e r, a nd
probably for the renewed Bronco 4x4).
T h at ’s ju s t pa r t of it. R ow le y i s a l s o s e pa r at i n g
the company on product lines, finding keen young
general managers to be advocates of every product.
“I f w e s e pa r at e d ou r R a nge r bu si ne s s out , it ’d b e
big enough to make the FTSE 250,” he says. “As a
young employee, how’d you like to be given charge
of a business like that?”
This approach involves ‘de-aggregation’ – a
t e r m R ow le y u s e s a lot. I n s t e a d of lo ok i n g at , s ay,
Focus sales as a whole, you study the performanceof individual versions – for example, Titanium,
V i g n a le , ST, e s t at e – i n i nd i v idu a l m a rk e t s , not i n g
how and where they sell, and emphasising the
successful, profitable models. In Rowley’s twin
HQs, Merkenich (Germany) and Dunton (UK),
there are now model-specific rooms with their own
teams working to boost individual models. “The
job is to drive gross margins,” he says. “I spend
time every week with every team, just seeing how I
can help. I like to be hands-on.”
R ow le y s ay s de -a gg r e gat i n g i s g i v i n g a mor e
realistic view of the saloon market, which still
yields decent volume but isn’t a big earner. “It’s
difficult to make money because there are lots of
players and lots of capacity,” he says. “That’s the
backdrop. The D-segment has fallen to nothing,
the C/D-segment is tiny, and though they’re still
big, the C and B-segments are shrinking too.
“ T he g r ow t h i n pa s s e n ge r c a r s i s i n t he sm a l l
utility segment (our Kuga) and mini utility (our
E c o s p or t). But w e h av e mor e t o do. I f I w e r e t o
A reborn^ Bronco^4 x^4 could^ find^ its^ way^ to^ Eur
opeRowley took the role
of Ford of Europe
president this April