Ford Beats Expectations, Expects $1 Billion Loss In Europe
Ford announced a second-quarter net profit of $1 billion, which was better than analysts expected. That’s the good news. The bad news is that Ford expects to lose more than $1 billion in Europe this year. Earlier this year, Ford forecast an annual loss of between $500 million and $600 million, Reuters says.
“As we look over the next five years and lay out all of our plans for our business, we just think the situation in Europe is going to be challenging,” CFO Bob Shanks said today.
Ford lost $404 million in Europe in the second quarter.
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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It is interesting to see data from just one region (rather than global profits/loss). Is there data out there detailing Honda, Toyota and the other major Japanese companies profits or losses in Europe. It would be good to know if the loss issue was an American and European company (exception VW) issue only.
Considering the state of the EU is it any wonder Ford is losing money there? GM is doing badly too.
What exactly is the problem in the EU for Ford?
Good thing we have One Ford. That amazingly shortsighted idea will soon be the reason that FOA will soon have a cash problem. If the mediocre products don't work in Europe, they CERTAINLY won't work here. Once the wave of good will towards Ford here (because they took taxpayer dollars eventhough they say they didn't) in the states begins to wear down, the profits will dry up. Ford has already botched the Focus and Focus Wagon launches with the Focus Wagon seeing two recalls in a week. Add to that the dismal sales of once great products (Explorer, Escape, Taurus, Focus, Expedition, etc) and soon Ford is going to be in a lot of trouble. They know it already...which is why they are scrambling to update their appliances every two or three years...to try and eek out every sale they can. People are already dumping F stock...