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European response to Bsegment Ka ldquohugerdquo Ford exec says
<p><strong>European response to B-segment Ka+ &ldquo;huge,&rdquo; Ford exec says. </strong></p>

Ford of Europe Has Big Plans for Littlest Cars

Roelant de Waard, Ford&rsquo;s chief marketer in Europe, says B-segment car buyers are moving away from the middle market, gravitating toward either value purchases or premium buys.

COLOGNE, Germany – Ford is chasing the market as it pushes its B-segment cars into the premium end of the value spectrum.

That is the clear message spelled out during the recent launch of the ninth-generation Ford Fiesta at its global reveal here by Roelant de Waard, vice president-marketing, sales and service, Ford of Europe.

He says European sales data gathered in recent years shows customers for B-segment vehicles are moving away from the middle market, gravitating more toward either value purchases or premium buys.

“According to forecasts, while the B-segment won’t grow very much in the next few years, the fragmentation we have seen over the last 10 years will continue, and that’s good news for customers who will get a lot more choice,” de Waard says.

The new Fiesta adds to this fragmentation with the launch of Ford’s first Active model specification, a SUV-inspired “soft-roader” to tap into the burgeoning demand for rugged-looking CUVs driven mainly in cities.

De Waard quotes figures from industry analyst JATO showing entry-level value models priced below €13,000 ($13,800), accounted for 12% of total 2015 sales, while 14% were in the higher price bracket of more than €20,000 ($21,000) and the remaining 74% were mainstream models.

Yet things are beginning to change, de Waard says. “The picture of the first half of this year shows a very clear trend. Although the mainstream is still the largest, sales are declining as families are choosing more to opt for value models or, at the other end of the scale, premium products.

“If you look at the sales volume, the increase has been quick (and) dramatic compared to last year, with entry-level sales rising by 11% and premium models by a notable 24%.

“Ford has traditionally been a very strong player in the mainstream world and Fiesta has remained the best-selling small car for the last four years,” de Waard says. “So the challenge for us, going forward, is to be able to compete across all these B groups. Our strategy is straightforward, driven by the reality of what our customers want and what they are buying.”

De Waard says the new, larger Ka+, which fits into the B-segment under the new Fiesta, is enjoying a sensational reception from buyers.

“We are getting a huge response to it, particularly in Great Britain, France and Italy,” he says. “And in fact this has been the fastest adoption of a new nameplate by customers that we have ever seen, with sales rising much faster than our expectations.”

However, de Waard indicates Ford’s ambitions are focused on high-value models to match the growing demand from affluent consumers downsizing from larger cars.

“This may be because they are going through a lifestyle change, or are feeling the increased pressure of living in today’s congested urban environments,” the executive says. “Either way, they still want to make a style statement and expect the same premium craftsmanship, creature comforts and leading-edge technology of larger cars.”

Ford’s own 2015 survey showed the largest share of new-car buyers of high-value B-segment cars – some 40% – chose superior styling and appearance as the main reason for their purchase, the executive says, adding this is borne out by current European Fiesta sales where almost half are for the range-topping Titanium trim level.

“This is why we are making the next-generation Fiesta more upmarket, broadening its appeal to meet the demands of these discerning customers,” de Waard says.

“We believe we now fully understand what the customers for this next generation of Fiesta want and the sort of people who will be attracted by it.”

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