Ford Motor Co. and General Motors Co. are working to break even or make a profit in the European market this 2011 despite the continent's economic problems, executives disclosed. At the Frankfurt Motor Show, GM Europe President Nick Reilly stated that in this time two years ago, their operations in the continent were in “severe difficulty, losing a lot of money."
He added that now, “the atmosphere is totally different.” GM is attempting to end losses in Europe, which have reached $14.5 billion since 1999.
Ford's $51 million pretax loss in its European operations during the last quarter of 2010 started a 40 percent drop in its share price this year through yesterday.
During the second quarter this year, Ford experienced a 45 percent drop in pretax profit to $176 million in its European operations. Industry analyst Rebecca Lindland of IHS Automotive commented that Wall Street expects one to achieve profitability anywhere in the world, including Europe.
The Ford and GM’s efforts come as the continent has become entangled in concerns regarding sovereign debt such as a potential default in Greece that has endangered euro’s stability, says Autonews. Reilly further disclosed that they have "seen no impact on our order intake."
He revealed that the goal of GM in its operations in Europe is to be "profitable by just better than break-even before restructuring charges." He also said that in 2012, the company will not have those restructuring charges. He added that they're mostly done and that the company will reap the full 12-month benefit of the restructuring that has been done.