Despite its rivals offering huge discounts, Ford's new-car sales in its main 19 European markets soared to 93,200 units in February 2010, a 1.8% increase compared with the record in February 2009. With the ending of scrappage schemes, it is expected that western European new-car sales will drop by 1 million to 1.5 million units in 2010.
According to industry observers, volume manufacturers will offer heavy discounting. Ingvar Sviggum, Ford of Europe's sales and marketing chief, said that Ford will not get involved in the price wars, calling such strategies to be "self-defeating in the long term."
Sviggum explained that Ford will not do anything to "jeopardize the sustainability of [its] business or that devalue [its] brand."
He said that Ford's market share was stable in February even with its competitors aggressively pushing large discounts.
In fact, Ford's sales gain in February is the ninth consecutive monthly increase in Europe. Scrappage incentives in major markets such as Germany, France, Italy and Spain, have improved sales of the Ka and Fiesta models.
Monthly sales of the Fiesta car at at 32,500 were the highest in February since 1998, keeping Fiesta in its spot as Europe's No.1 small car and No.2 best-selling car overall in February.