Ford overtakes GM in Europe, as it is recovering more briskly on the market

Article by Christian A., on January 29, 2013

In the latest fourth quarter, Ford Motor Co. had its lowest operating profit of the year. But there’s a bright lining in Europe. Ford is recovering more briskly in Europe than its rivals as it uses its revival in the U.S. as a guide. Ford has reported losses of over $1.5 billion for the full year in Europe and has predicted that 2013 will be no different.

When interviewed at the Detroit auto show, CFO Bob Shanks said that these losses will start to vanish in about two years. Peter Nesvold, a Jefferies Group Inc. analyst, said that Ford will be ahead of General Motors Co. by about a year in its efforts to overhaul operations in the region. He said that the automaker’s board has demonstrated more conviction in its European restructuring plan by doubling the quarterly dividend earlier this month.

In an interview, Nesvold said that Ford was able to achieve what it set out to do in North America without any external help. He explained that the issues in Europe are not identical but they are similar. In the fourth quarter, the revenue of Ford fell by 4.4% to $33.1 billion, the average of 11 estimates compiled by Bloomberg, from $34.6 billion the previous year. The average of 19 estimates is for 26 cents of operating profit per share, up from 20 cents a year earlier.

CFO Shanks said that the past nine months for the company have been “wonderful” when it comes to raising its profitability, margin and in posting a highly positive operating cash flow. He expressed confidence that this trend will continue. In 2006, CEO Alan Mulally came to Ford from Boeing Co. He used $23.4 billion that the company borrowed late that year to revamp its range of fuel-efficient models like the Focus and Fiesta.

Topics: ford, gm, europe, sales

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries