Ford Down In Europe, Expects Big Hit On Earnings

Bertel Schmitt
by Bertel Schmitt

Also suffering from the European contagion is Ford. The blue oval’s western European are down 10 percent in the first half of 2012, Reuters says. June sales are down a hefty 16.1 percent.

Once Ford releases Q2 results, overseas losses are expected to be up threefold from the $190 million recorded in the first quarter. Ford already fingered Europe as the culprit.

GM Europe has not yet reported first half sales figures for Opel. In May, Opel’s year-to-date sales were down 12.3 percent in the EU, Ford’s were down 12.8 percent. Please note that different companies have a different view of what is part of their “Europe.” The European manufacturer association ACEA will release its numbers next week.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Ronnie Schreiber Ronnie Schreiber on Jul 14, 2012

    Years ago this or that less developed European country would be known as "the weak sister of Europe". Now it appears that all of Europe is a weak sister. At the NAIAS this year someone asked Marchionne about Europe. He made a sour face and he said it was at best going to be flat for at least two years.

  • Bd2 Bd2 on Jul 14, 2012

    This is where Ford's weakness in Asia (China) really hurts them.

  • Dimwit Dimwit on Jul 14, 2012

    As was previously stated in the Opel thread, this is a direct reflection of the overcapacity in Europe. Too many simialr models fighting for sales. Someone needs to die and let the rest breathe. PSA, Renault and Opel look like the obvious culprits but it could be someone else. Vauxhall? SEAT? Parts of FIAT? Until that happens, Ford is going to be running into problems. Not enough to get them out of the market but will put pressure on Dearborn to make moves.

  • -Cole- -Cole- on Jul 15, 2012

    Leaving Europe would be a Bold Move

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