Ford worried about the state of the European economy 0

Like all other mass car producers in Europe, Ford is worrying about the state of the European car market. They are now planning on reviewing their five year internal business plan in order to take into consideration their recent failures within the European market.

Currently Ford is second behind General Motors in the American car market. Bob Shanks has stated that a better plan is needed in order to respond to the current market patterns of Europe and that it is time that the company faced reality. However there have been no specific changes stated as of yet. These are expected to be announced next month. Until then they will remain confidential it is believed.

The Euro Zone debt crisis has been quite a hindrance for car markers in recent times. So much so that the likes of Vauxhall and Peugeot are producing more cars than what is in demand. This has caused rumours of job losses, plant closures or even potential closures of company’s altogether. Vauxhall have been making losses for the past 12 years. Last year losses were recorded at more than half a billion. Originally General Motors has hoped that Vauxhall would break even but they were later forced to retract that statement.

Ford may lose $600 million
Ford is expected to lose $500 million and $600 million this year in Europe alone. Clearly that is a significant amount of money to lose which will not help the company with their battle against General Motors.

The state of the Greek and Spanish economy has not done any good for the European car market. Recently these two markets have made headlines with countries seemingly on the brink. Although emerging markets such as Brazil, India and China have come into prosperity out of nowhere in recent times, growth in these markets have slowed down somewhat. The American car market also appears to be at risk after strong signs that it has recovered.

Ford reviews their internal strategy on their business annually. Two of these updates relate to the reviews of the company’s five year projections. The company will continue to adjust their five year plan throughout the year with a final presentation to Bob Shanks at the end of the year.
Hopefully the losses for Ford in Europe this year will not severely affect the company’s performance throughout the following years too severely.