Inside Model E: why Ford is hitting the reset button in Europe

Zillig said he believed Ford was the only manufacturer to so openly report this but said that it “showed the confidence for us to be all in on BEV”. He added: “The profit and loss won’t look pretty for the first couple of years...”

Globally, Ford is investing $50 billion (£41bn) in EVs. Its investments in Europe include $2bn (£1.6bn) to turn its factory in Cologne, Germany, into an EV plant; $490m (£402m) in Craiova, Romania, to build the Puma EV from 2024; and $470m (£386m) in Halewood to build electric drivetrains.

The first vehicles to come from Cologne will be a new Focus-replacing crossover at the end of 2023, and a different-bodystyle version of this car will follow soon after in 2024. The pair are built on the Volkswagen Group’s MEB platform, which Ford has access to as part of the tie-up of the two automotive giants. 

“We decided to build our first high-volume electric vehicle here in Cologne,” said Sander on the decision to axe the Fiesta to make way for these new crossovers. “There comes the point where we need the space for construction, because we're turning the Fiesta plant into a fully battery-electric plant. This is why we had to make a decision that we have to stop Fiesta production.”

Sander said the decision to axe the Fiesta was “not one we did lightheartedly" but "we have to do something”. 

“The goal is to build a profitable, thriving business in Europe,” said Sander. “We have levers to pull. As a brand, there's work to do for Ford in Europe. Ask customers today and we’re seen as reliable, a good brand, quality and affordable. It’s a good, solid foundation, but is it good enough?

"Ford as a company builds the world’s best-selling sports car with the Mustang and the best-selling vehicle on the planet with the F-150 [pick-up truck]. So is being good and affordable sufficient? No. We can do more and be more confident.”

As part of this change, Ford will also wear its US roots more overtly and act more akin to other vast international American companies.

“We’re an American company, the only one [car company] doing business in Europe,” said Sander. “Europeans like American companies: Apple, Microsoft, Coca-Cola. We should be proud of being American culturally and socially.”

To that end, Ford has come up with a new guiding mindset: Adventurous Spirit.

“American means we’re rebellious,” said Zillig. “It means we’re restless. It means we’re uncompromising. It means we’re defined by an adventurous spirit, our new north star. 

“Adventurous Spirit is the ethos that will help drive our transformation in Europe by helping us connect emotionally with consumers who say they know we’re American but don’t feel we’re American.

“You won’t see these words on any of our advertising, our brochures or any other materials. Bring on Tomorrow will continue as our optimistic, future-facing rallying cry to consumers. 

“Instead, Adventurous Spirit is the philosophy that will inform and add meaning to everything we do, reinforcing our identity as we reinvent the Ford product portfolio and customer experience in Europe.”

Sander leads a 12-strong board in the Model E division, made up from executives not only from the automotive industry but also other industries, including customer experience boss Aaron Mitchell, who recently joined from Ikea.

“There aren't many opportunities you get to shift a global brand,” said Mitchell. “There are lots of similarities between Ford and Ikea. They were both founded by iconic entrepreneurs, touching people all over the world. They've changed their markets but then been disrupted themselves, Ford by the likes of Tesla and Ikea by tech companies like Amazon. Then you find a new role in the world.”

On how Ford will change its customer experience, Mitchell said it's about “changing the culture in dealers to not about selling cars but solving problems”.

Sander added: “We're a family business, and we look after our people and our customers.”

And what of the cars in this new Ford? “We can do a great job with the brand and the customer experience, but it’s about the product,” said Sander. "We're focusing on really distinctive, really special cars that get better over time with over-the-air updates.”

Ford will continue with its “electrifying icons” strategy, which it started with the Mustang Mach-E. Cars in the new era of Ford will be designed to sit within one of four families within its Adventurous Spirit mantra.

Wild Performance is for sporty vehicles like the Mustang; Urban Escape is for characterful smaller cars like the Puma; Active Adventure is for more family-size SUVs like the Kuga; and Ultimate Outdoor is for its hardcore off-roaders like the Bronco.

Ford is also planning to overhaul the interiors of its models to make them more digital and to introduce a new user interface. It will then continue to roll out new features using over-the-air software updates.