Although its North American operations are faring well, the automaker having posted $2 billion in operating profit during the second quarter of this year, Ford’s European arm, is like many other auto firms in the region, suffering due to the economic crisis. Last month it reported a 15 per cent drop in sales across the top 19 European markets. Overall Ford demand in Europe has dropped by 28 per cent so far in 2012, a steeper decline than the industry average, which currently stands at 8 per cent. However, despite the doom and gloom, plus predictions that Ford expects to lose some $1 billion U.S. in Europe this year, there are some bright spots.
The U.K market has bucked the overall European trend, with sales edging upward in recent months, helped by steady demand for the Fiesta and Focus models and the traditional registration switchover in September which usually results in a spike in new vehicle sales, as consumers aim to get into the latest offerings.
Roelant de Waard, head of marketing, sales and service, Ford Europe, said “we are pleased with our strong performance in key markets such as the UK and in the Russian growth market which helped to stabilize our sales in what continues to be a very difficult European market environment.” Nevertheless overall new vehicle demand across the continent remains at its lowest level since 1998, with no visible signs of improvement, at least in the short term.
