Mark Fields, who took the reins of the company in July, said Ford’s European arm will lose around $1.2bn (£740m) this year, and remain $250m in the red in 2015, amid tougher than expected economic conditions.
Ford’s struggle in Europe will also drag down group profits, the company warned. The car manufacturer, which is headquartered in Detroit, said it will make a profit of about $6bn before tax in 2014, down from previous forecasts of between $7bn and $8bn. It is still on track to deliver a pre-tax profit the following year.
Sales in North America are expected to rise by more than a fifth by the end of the decade, the company added, but margins will be tighter than hoped, at the bottom end of the 8pc to 9pc range previously forecast.
The forecast came on the day Toyota said it would recall more than three-quarters of a million pick-up trucks to repair a problem with the vehicles' suspension that could potentially increase the risk of car fires.
The Japanese auto giant's US subsidiary has issued the alert which concerns 690,000 Tacoma 4x4 and Tacoma PreRunner trucks in America for the model years from 2005 to 2011.
The problem concerns the trucks' rear suspension springs which could fracture because of stress or corrosion. If the broken springs move out of position there is a risk they could repeatedly be pushed into contact with the fuel tank, potentially leading to it being punctured, raising the risk of a fire.
Toyota said it was not aware of any fires, crashes, injuries or fatalities associated problem.
more
{ 0 comments... » Ford shares crash 7pc over warning on profits in Europe read them below or add one }
Post a Comment