Fleet News

Ford looking for European savings as earnings are cut

FORD is to take further action to reduce costs in its European operations following the announcement of a $39 million cut in earnings to $157 million in the second quarter of 1997. Although Ford earned a record $2.53 billion worldwide in the second quarter, up 33% from $1.903 billion in the second quarter of 1996, chairman and chief executive officer Alex Trotman said: 'We're all encouraged, but we're not letting up one bit.'

The improved results follow a significant restructuring in the company's business worldwide. Trotman, commenting on Ford's European operations, said: 'We've worked hard to broaden our strong product line-up and reduce costs, but the market in Europe remains tough for everyone. Assuming economic stability continues, we're on track to improve our results in Europe for the full year, but we know more actions will be needed to achieve our long term objectives.'

A Ford of Britain spokesman added: 'We are doing everything we can to remain as competitive as possible and maintaining our market share and increasing it in some markets. We have some serious issues to discuss on costs and we will do everything we can to reduce our costs.'

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