Ford has revealed that it expects to lose £644m profit in Europe this year.
Ford’s losses have been attributed to “a very tough external environment, a situation we expect to continue for the foreseeable future”, according to Ford CEO Alan Mulally.
Ford’s European losses, including a 57 per cent profit decline in the second quarter, combined with a “substantially lower” profit in South America, would contribute to the car maker’s global fall in profit for 2012. Previously, Ford was confident that it would match 2011’s $8.8bn (£5.63bn) pre-tax operating profit, but this is now unlikely.
Mullaly said that Ford is currently reviewing the marque’s European arm, but that despite advice from industry analysts that Ford must reduce capacity immediately, closures of any of Ford’s five European factories were not on the agenda.