Ford Plans Shift from Cars to SUVs in Europe

Ford Motor Co., facing losses in Europe, says it will shift its product mix in Europe sharply from cars to SUV/crossovers and commercial vans.

The company’s European operations swung to a pretax loss of $73 million (€63 million) in the second quarter and is headed for a full-year loss after earning $234 million there in 2017.

Chief Financial Officer Bob Shanks told analysts earlier this week that most of the carmaker’s lineup in Europe—conventional cars and minivans—is unprofitable. The moneymakers are SUV/crossovers, such as the Kuga (pictured), midsize Ranger pickup trucks and unspecified imported models.

The company also has been plagued with slumping sales in the U.K., its largest European market.

Jim Farley, who heads Ford’s global markets, say the company will “redesign” its European operations around light commercial vehicles and SUV. Ford’s Kuga and midsize Edge crossovers are enjoying record-high sales in Europe.