Next year all eyes will be on the replacement for the Ford Focus as the rest of the motor industry asks whether the company can repeat the immense sales success of the current model. Four years into its life, the Focus still enjoys a place at the top of the fleet and retail sales charts, for both 2002 and the first six months of 2003.
The car sold more than 100,000 fleet units (152,000 overall) last year, which matches or dwarfs the entire fleet sales of most rivals ranging from Renault, with total fleet sales of 102,272 last year, to Peugeot, Volkswagen, Nissan, Citroen, Toyota, BMW and any other manufacturer competing in the market.
From its launch, the Focus has won plaudits in the industry and its success continued this year when the car fought off newer rivals to secure the Arval PHH-sponsored Lower Medium Car of the Year trophy at this year's Fleet News Awards.
The judges praised Ford's mid-life revamp of the range, which included an industry-leading range of diesel engines and new top-of-the-range ST and RS sports variants. The car marked the start of a new approach to the market from Ford, in which emphasis was placed on combining quality, reliability and driveability. The Focus achieved this but also managed to add the all-important X-factor – being an aspirational vehicle for fleet car buyers, despite being a volume model.
For Mike Wear, Ford's fleet director, memories of the first showing of the new Focus are still strong in his mind, particularly as the company prepares for next year's new model. He said: 'Focus was very different from the old Escort and I had memories about the public reaction to the Sierra when it was first launched. Some thought that design was too radical. But the Focus was a fantastic launch. As well as being a great design from the outside, when you sat in it, everything fitted. The quality was good, it was intuitive and was great to drive.'
The Ford Focus was the best-selling company car last year, at 101,399 units, an increase of 7.17% on the previous year. The diesel Focus was the best-selling heavy-oil car last year, with 23,178 units sold, an increase of 30.43%, just behind the diesel Ford Mondeo.
Since the Focus was launched, it has sold 572,774 units in the UK and a total of 2,750,000 in Europe. As a worldwide platform, it has sold over three million. But Wear argues the success of the car lies in more than just enticing new car buyers. It has to be a car for the long term, attracting used car buyers when it ends its first life in the fleet market.
He said: 'If you flood a market with product, then you can damage residual values. Overall, Ford has reduced its exposure to fast-churn markets, such as the daily rental business.
'Where once we had 80% of the entire daily rental market in the 1980s, that has dropped to something like 20% today. We have set a limit and that is it. We did some research on rivals and one of them saw 50% of the vehicles they sold resold within the year. That is unsustainable and it has an effect on everyone else in the market because it pushes down residual values.
'We knew the Focus would make a great car even at six to seven years old, which is important, because that ensures you get continuing demand for things like spare parts and servicing. It ends up as part of your heritage. Dealers are happy to take used cars back, because there is demand for the model. It is the most saleable used car we have ever had.'
This clearly raises the pressure to get any replacement model absolutely spot-on. The new Focus will come on a new platform, which will also be used on the C-Max that is launched later this summer. It is part of a renewal strategy that sees Mondeo updated with new engines this year, including a direct injection petrol engine, and with six-speed manual and five-speed automatics.
By the autumn, the firm will also introduce a Euro IV compliant 2.0-litre diesel engine in the Mondeo, which avoids the 3% benefit-in-kind supplement introduced on diesel models by the Government.
Wear added: 'However successful you are, you can't afford to stand still, particularly with products such as the new VW Golf and Renault Megane.'
As part of its continuing drive to bring in more fleet business, the fleet team has been enhanced by Kevin Griffin, who has been brought in as sales director from Scotland, where he was district manager.
Wear said: 'This is a key appointment. The UK is the biggest market for Ford outside the US, and we have been working with Ford executives in the States to emphasise the unique importance of fleet in this market.'
That importance is growing as Ford is expecting one-third of future profits to come from the European markets, with a further third from the Premier Automotive Group (PAG) and the rest from the USA. The USA is currently the main profit centre, thanks to demand for SUVs, so it is quite a shift.
Wear is confident of building demand and profitability by its access to the wider PAG vehicle offering during fleet deals.
A single Ford agent is able to offer a package including Jaguar, Volvo, Land Rover and Mazda, a formidable product range that has attracted 40 solus deals, with a volume of 17,000 vehicles a year.
Wear said: 'Volvo has been the main beneficiary. Fleet managers now have so many other responsibilities that saving time has become a key issue. Being able to cover several brands through one salesman is an advantage. However, there are other factors to take into account, so some companies may not want to be restricted to one firm, even if it covers several brands. It does also help with winning dual badge contracts though.'
Green credentials and cracking new van make for a hat-trick of successes
FORD enjoyed a string of successes at the Fleet News Awards 2003, when it took the Environmental Manufacturer of the Year Award and Best Van under 2.1 tonnes, sponsored by BT Fleet, with Transit Connect.
The environmental award, sponsored by the British Vehicle Rental and Leasing Association, was given to the manufacturer that could prove its commitment to the environment during the production and design process, before cars hit the road.
This award was judged by the BVRLA, which assessed manufacturers on a number of factors using a detailed questionnaire. Points were awarded for separate criteria, including environmental strategy, design, manufacturing, operation, end-of-life, stewardship and sustainability.
It focused on production processes and recycling issues, as well as the commitment of management to ensuring suppliers met high environmental standards.
The results were presented to the Fleet News judging panel, which examined the responses in detail before it ratified the decision. Ford's environmental credentials, including its production processes, content of recyclable materials in vehicles and consideration of emissions legislation were all part of the criteria, which gave the Blue Oval the edge over runners up Volvo and Honda.
On the vehicle front, it already has an LPG Focus and Transit, both of which receive a 100% discount on the London congestion charge because of their low emissions.
It rounded off the hat-trick with the van award for the Transit Connect, which was launched last year. The judges said the van introduced the qualities of much larger vehicles to a new segment of the market, leaving rivals trailing in its wake.
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