The grass isn’t greener on the other side for Ford 0

Just as we reported that Ford has made a 10th consecutive quarterly profit thanks to success in America, news has emerged that they are not doing so well on the other side of the world.

Many different factors have meant that the company’s performance in Europe and Asia has dipped.

One of those factors is that within Europe, prices of steel and other essential materials has risen. The euro zone debt crisis has also majorly effected the company’s operations throughout the continent.

Ford has also failed to make their presence felt in the continent of Asia like other major auto manufactures Volkswagen and General Motors. In order to operate in Asia, production costs of cars and the purchasing of factories are very high. This has held back the company in many respects and prevented the reported third quarterly profit yesterday from being higher than the same time last year.

Profit may is expected to fall yet again in comparison to year on year figures in the final quarter of the year as $280 million is due to U.S union workers. However Alan Mulally is adamant that the company will achieve a higher profit margin than last year. He was quoted to have said “Overall, we had a solid third quarter in line with our plan despite a business environment that has become more challenging,”

Many expected the company to perform well in their home country rather than the rest of the world, but the comparison in performance represents quite a large gap. Matt Jones who works for Edward Jones as an Equity Analyst has said that Ford have taken advantage of other leading car manufacturers misfortune very well but still have plenty of work to do. He said “Over the last couple of years Ford benefited from the GM and Chrysler bankruptcies, Toyota’s quality problems and competitor disruptions from the earthquake in Japan. Now the competition is back in the game while the economy is a bit shaky. Ford is still in a good position but it definitely gets harder from here.”

If Ford were to indeed perform better in Europe and Asia, their profits would be a lot higher. Will next year see them improve their operations in other parts of the world apart from America?