Ford is expecting a sales gain in Europe in 2015, as boosted by demand for new models. The gains should help the carmaker further trim its losses in the region, although it pushed back its timeline for returning to profit after next year. “Our expectation is to get back to profit as soon as possible" in Europe, Ford chief executive Mark Fields remarked at the Paris Auto Show.
Ford reduced its forecast for global earnings Sept. 29 and disclosed that its operations in Europe will fail to return to profit due to a decline in the Russian auto market as well as low interest rates in the region.
He added that “a little bit of weakness” in European demand in the past few months prompted Ford to cut forecasts. Ford has seen its EU and EFTA markets jump 7 percent in the January-August period to 634,687, according to data from industry organization ACEA, giving it a 7.3-percent market share.
Auto executives are expecting the European market to surge at least 3 percent this year. On the other hand, demand for vehicles in Russia is expected to drop over 10 percent this year, after sales for the first eight months of 2014 dropped 12 percent to 1,582,713 vehicles, according to the Association of European Businesses.
But still, Ford remains optimistic with the European auto market. Stephen Odell, chief of Ford’s European operations, said the carmaker expects the market to surge from 14.5 million-14.6 million deliveries this year to 14.8 million-15.3 million vehicles in 2015. [source: Bloomberg]