US:Ford sees challenging year ahead in Europe - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 01-12-05, 06:50 AM Thread Starter
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
US:Ford sees challenging year ahead in Europe

Ford sees challenging year ahead in Europe


DETROIT -- Ford Motor Co. is braced for tough market conditions in Europe again this year as stagnant demand and higher prices for materials put the squeeze on carmakers, the head of its European division said on Tuesday.

"The environment is going to be at least as challenging in 2005 as in 2004," Ford of Europe Chairman Lewis Booth told reporters at the North American International Auto Show.

Booth said Ford was forecasting flat industry sales despite an upturn late last year in many big markets.

"We still see no real retail demand in Germany and until we see signs of retail customers coming into showrooms in Germany the European industry is going to stay challenged," he said.

The British market also cooled off late last year as higher interest rates made consumers more wary about spending.

Heavy incentives still contributed to strong December showings in both those markets, Booth said.

Booth would not comment on whether Ford had hit its target of narrowing its 2004 loss in Europe to $100 million to $200 million from $1.1 billion in 2003, a goal that company officials had said after third-quarter results that it was set to meet or beat.

Booth said Ford did not plan to cut any more jobs in Europe after having reorganized capacity to be more in line with demand. It now operates close to full capacity.

The focus will instead be on generating efficiencies, he added, noting Ford had been able to work with staff in Germany to reduce benefits.

Still, the strong euro was helping Asian manufacturers boost their presence in Europe at the same time raw materials prices had risen, Booth said.

"In 2005 the continued pressure on cost is going to be on material costs," he said, adding Ford was looking to purchase more components from low-cost countries in Eastern Europe, India and China as supplier markets there developed.

My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline  
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
US:Ford boosts outlook for quarter, year Stacy94PGT Ford Worldwide News 0 09-17-04 06:44 AM
US:Ford loses market share for 9th year in a row Stacy94PGT Ford Worldwide News 0 09-17-04 06:00 AM
US:Ford Announces Exec Changes Including -O'Connor Retirers - Hesterberg Replaces Stacy94PGT Ford Worldwide News 0 09-10-04 08:00 AM
U.S.A.:Ford rebounds to earn $495 million in 2003 Stacy94PGT Ford Worldwide News 2 01-22-04 05:55 PM
U.S.A.:Ford names Europe chief Stacy94PGT Ford Worldwide News 1 08-27-03 11:28 AM

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome