All is not well overseas for the Ford Motors The Detroit News reports that the automaker disclosed today that it is increasing its loss projection for Ford in Europe. The Ford profits drop for Europe this year is on pace to almost double the previously projected loss level of $1 billion. The euro zone financial crisis, which has showcased ample servings of runaway debt and high joblessness, is considered to be a significant factor in Ford's lackluster European sales performance. Will you be looking to sell or buy a new or used Ford Pickup Ranger Spokane? If this relates to you, take a look at Gus Johnson dealership! Large Ford profit In the second quarter of 2012, Ford lost $465 million globally, $404 million of which came from Europe. Ford recorded a global profit of $1 billion in the quarter, which, in contrast to year over year profits, was a 58 percent drop. In the quarter, Ford projects a pre-tax profit of $8.8 billion, which is about the same as 2011 but not as good as envisioned. The earnings per share were 26 cents with the $1 billion profit, which was a 59 percent drop from the year before. Thomson Reuters did a survey that forecasted 28 cents per share, according to Wall Street. Dismal international projections from Ford Ford Motors announced that it expected losses three times worse than the previous quarter last month with expecting to lose $570 million. In the first half of 2012, Ford sales dropped 10 percent in Europe; this is why 80 percent of the losses came from European Ford sales. Allan Mulally is the Ford CEO who explained that Ford is not alone. Europe has been hurting other United States automakers as well. "We are assuming that this is a structural issue," Mulally said. "It's not going to come back fast and be saved by volume. I think you're seeing the same viewpoint from most of the automobile companies." Not all facilities can stay open In order to plug the European sales sinkhole, experts predict that Ford will need to close down one or more of its European assembly plants. Possibilities contain Southampton, England and Genk, Belgium, reports indicate. Ford CFO Bob Shanks dropped to discuss the specifics of any potential facility closures, but did note that the automaker is prepared to cut back in other ways, including shorter work days, line reductions and layoffs. "We always have to have a base assumption," Shanks said. "There's always volatility in our business. As we develop our plans … you've got to build in enough of a cushion … to be satisfied you will be profitable in an environment that is less robust than the assumption." For The Absolute Best Sale On A Pre-Owned Ford Stop By Spokane Dealers Today Sources Barrons The Detroit News Southgate News-Herald
