Ford has announced it will phase out the Mondeo early next year after nearly three decades of production.

The saloon car used to be hugely popular among executives and families, with about five million sold in Europe since its introduction in 1993.

At the Labour Party Conference in 1996, leader Tony Blair identified “Mondeo man” as a centrist, hard-working voter who was a key target for the party.

But demand has since shifted towards SUVs and lower-emission cars, leading Ford to axe production of the Mondeo at its plant in Valencia, Spain.

The American car giant has been re-evaluating its business model in recent years to suit customer demand.

Earlier this year it announced investment of at least 22 billion US dollars (£16 billion) in electrification technology.

Its new 2.5-litre hybrid engine will be built at the Valencia plant from late 2022.

Kieran Cahill, vice-president of manufacturing at Ford of Europe, said: “Today is another step on Ford’s electrification journey, providing a bridge to an all-electric passenger vehicle future, and demonstrating our continuing commitment to our manufacturing operations in Valencia where we have invested around three billion US dollars (£2.1 billion) since 2011.”

The firm plans to have every car in its European range zero-emissions capable, all-electric or plug-in hybrid by 2026, before going fully electric by 2030.

Ford closed its engine factory in Bridgend, South Wales, with the loss of 1,700 jobs in September last year.

It has another engine plant in Dagenham, Essex, and a site making transmissions in Halewood, Liverpool.