By on April 24, 2013

The pendulum swings to the U.S.: As expected, Ford turned in higher-than-expected first-quarter profits today, while in Germany, Daimler’s formerly pornographic profits were slashed in half, and Volkswagen stubbornly maintained its outlook despite declining profits.

Ford’s North American unit posted its best quarter in more than a decade on the strength of new models, Reuters says. Revenue in North America shot up by one-fifth during the quarter. Ford reported a pretax profit of $2.1 billion, or 41 cents per share for the quarter, down from about $2.3 billion a year earlier, but better than analysts expected. Ford says it expects to lose $2 billion in Europe this year.

Meanwhile in Germany, Daimler ditched its earnings forecast after its first-quarter profit plunged more than half, brought on by a protracted slump Europe and problems in China, Reuters says.

In Wolfsburg, Volkswagen’s first quarter earnings declined to 2.34 billion euros ($3.05 billion) from 3.16 billion a year ago. VW is bracing for “increasingly stiff competition in a challenging market environment,” Reuters reports. Nevertheless, Volkswagen sees no reason to change its goals to match last year’s record operating profit of 11.5 billion euros and to push global deliveries to new record levels.

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15 Comments on “First Quarter Results: Europe Tired, America Wired...”


  • avatar
    tp33

    Your point is irrelevant at best, and in some ways, downright offensive. Perhaps you’d prefer we bring back forced sterilization for the poor and “feeble minded?” Serves ‘em right for having all those babies! Oh wait, I forgot, Nazi eugenics and Jim Crow era social engineering were “bad” things.

    Stick to the car biz, boss, lest you stir up too many hornets.

  • avatar
    Commando

    The globilization of trashed economies is escaped by no area of the world.

  • avatar
    thornmark

    >>As expected, Ford turned in higher-than-expected first-quarter<<

    That statement, of course, makes no sense.

    Nice to know Ford is making money w/ 1/3 fleet sales and poorly made new models.

    • 0 avatar
      Chicago Dude

      “Nice to know Ford is making money w/ 1/3 fleet sales and poorly made new models”

      Next quarter they should try for 2/3 fleet sales! Analysts will have to expect to have their expectations exceeded by a larger amount.

    • 0 avatar
      sunridge place

      ‘Nice to know Ford is making money w/ 1/3 fleet sales’

      I know its tough for some people to understand that things like fleet and subprime are not all that bad when executed properly and assume apocalyptic endings to things they read but do not understand about the car business.

      I think Ford is really around 10% daily rental. Most of their other fleet sales are commercial sales with some government mixed in. Ford is probably running well over 100% factory utilization and the earnings kind of make people crying ‘FLEET!!!!!!!’ look a bit silly.

      • 0 avatar
        CJinSD

        An article I read had a Ford insider saying that almost half of Ford’s 32% fleet sales were ‘good fleet,’ meaning commercial vehicles and special fleet automobiles like patrol cars instead of rental cars. That would put their rental output over 16% of their total.

        • 0 avatar
          sunridge place

          Just go to the transcripts of the sales calls. I’ll assume you don’t think Ford is lying on these calls.

          http://seekingalpha.com/article/1314761-ford-motor-company-s-management-hosts-sales-conference-call-transcript?part=single

          Through March this year it is 13%…right in the middle. Q1 is also usually heavy daily rental.

          For 2012CY Ford was 11% daily rental.

          http://seekingalpha.com/article/1093521-ford-motor-company-management-discusses-december-2012-u-s-sales-transcript

          But, you have to understand how fleet works and how even daily rental can fit properly into a production mix when you are fully utilized and the individual vehicle P&L are considered.

          I’ve seen you blast that Focus is 45% fleet as if its 45% going to daily rental and I’ll add my statement from above. Some people see ‘fleet’ or ‘subprime’ and make assumptions based on those words. That said, improper use of either of those things will have a negative impact.

          Fleet and Subprime can be done correctly within the overall structure of an OEM setup. Ford’s North American profits seem to indicate that fleet can be done well.

  • avatar
    sirwired

    “As expected, Ford turned in higher-than-expected first-quarter profits today”

    Errr… huh? They were expected to beat expectations? Does. Not. Compute.

  • avatar
    Beerboy12

    I am surprised at the negative comments over Ford’s success, I for one like good news. Can you imagine the trollish, angry outpourings if Ford’s position was poor or failing. Oh! Well!
    VW, sensibly, like their cars, is most likely looking at the cyclic nature of the economy and the industry.

  • avatar
    86SN2001

    Sorry Ford…Toyota proved long ago that you can turn a profit by building mediocre, bland products that are riddled with quality issues.

    Had you been building vehicles that are even close to a quality product, you would have made far less money. Nice to see you’re sacrificing quality for higher profits.

    Meet the new Ford, same as the old Ford. This is Nasser era incompetence.

  • avatar
    Steve-O

    Great result, especially considering the situation in Europe. The new core products are selling well so now lets see them do the same for Lincoln (that had to be the elephant in the room on the analyst call).


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