Ford Revises 5-Year Forecast on European Economy Woes
Ford has fared extremely well of late here in the U.S., but according to a recent report, top brass at the Blue Oval are bracing for what may be a dismal outlook in European sales in the coming years. Ford CFO Bob Shanks said the automaker was revising its outlook and business plan to take in to account the financial situation in Europe. "We have to develop a better plan in response to what's going to be a much less favorable external environment. How do we tack to respond to new realities? That's what we're in the process of doing," said Shanks. The European debt crisis has strained sales, leaving Ford with high inventory in some places and tight margins. The automaker expects to lose about half a billion dollars or more this year in Europe. Still, Ford has raked in nearly 30 billion in just the last three quarters, roughly the equivalent of what it lost from 2006 to 2008. Global markets have been uneasy of late, and in Europe worries over fragile economies in Spain and France have had a ripple effect across the continent. "Clearly in Europe, if you go back and look a year ago we didn't envision the type of environment that it looks like we're going to be living in for a while," Shanks added. Ford will revise its planning and present it to the board for confirmation at the end of this year.Source: Automotive News
The first full week of June has come and gone but not without some news from the automotive world.