The Blue Oval's European division reports encouraging financial results compared with the first six months of last year

Ford’s ailing European division has edged back into profit according to the latest financial results from the carmaker.

The brand edged into pre-tax profit in the second quarter of 2014, making £8.2m between April and June this year. Although that’s a profit margin of just 0.2 per cent, it’s a big improvement on the same period in 2013, when Ford of Europe lost £180m.

Ford’s impressive turnaround is better illustrated by the first-half results. The Blue Oval's European division lost £105m between January and June this year, but in the same period in 2013, it lost £430m, although some of that figure was associated with the decision close the Ford factory in Genk, Belgium.

However, Ford said it does not expect to turn a profit in Europe until 2015, with losses in the second half of this year anticipated to be higher than the £105m in the first half. The company blames expected lower overall EU sales in the second half, as well as the costs of starting production of the new Mondeo.

Across Ford’s global operations, however, the company made a healthy pre-tax profit of £1.5bn in the second quarter of 2014. Ford says it expects to make a global pre-tax profit of as much as £4.7bn in 2014.

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Our Verdict

Ford Mondeo 2007-2014

The Ford Mondeo is a fine car in most areas. The family hatch is still a class leader even as its replacement nears

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Comments
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25 July 2014
Basic economics. Run the company well and build the cars that people want and are pretty dam good then profits will follow. Special mention to the Fiesta which still sells far better than the competion after over 7 years in production, Focus might not be everyone’s cup of tea but sells well to.

 

Hydrogen cars just went POP

28 July 2014
Oh, and to be truly profitable, don't make cars in the UK. Just import them from cheaper countries not hindered by an overvalued pound. It's not all bad for Britain, holidays abroad for the remaining workers are nice and cheap. Bulgaria is nice at this time of the year. Why is it good news that an American based multinational is profitable selling imports into Britain? If those profits are high does it mean that their pricing is, too?

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