US carmakers have historically pursued similar strategies in Europe. General Motors owned and manufactured European marques such as Opel/Vauxhall and Saab, but it sold the former in 2017, and shut the latter back in 2009.
Meanwhile, Ford offloaded Aston Martin in 2007, Jaguar and Land Rover in 2008, and Volvo in 2010.
After years of losing money, Ford is currently redirecting its European business towards electric and commercial vehicles and away from small, affordable cars, such as its Focus models.
Ford plans to cut 800 jobs in the UK and 2,900 jobs in Germany by 2027, which represents a 14% reduction in its 28,000-strong European workforce.
Elon Musk’s Tesla has a factory near Berlin in Germany, where it makes its Model Y cars for the European market, but even here there are headwinds as low-cost Chinese imports in particular see their share of Europe’s market for electric cars grow.
Europe is a very tough marketplace for carmakers, according to Jose Asumendi, head of European automotive research at JP Morgan, an investment bank. “You need to have the right products, and you need…
