Fleet News

Falling sales hit Ford's profits

FALLING European sales and market share, particularly for the Ford Fiesta and Mondeo, contributed to the giant global manufacturer seeing profits on the continent slump in the second quarter of this year. Ford of Europe profits fell from $310 million in the first quarter of 1998 to $89 million after a $125 million charge related to the acquisition of Volvo in March. Excluding the one-off charge profits were $214 million.

In announcing the results Ford president and chief executive officer Jac Nasser said: 'These results reflect lower volumes and market share for Ford-branded vehicles, principally the Fiesta and Mondeo, and lower exports, offset partially by the Focus and higher volumes at Jaguar. It will be a challenge for Ford to achieve its full-year 1999 milestone for Europe, which is to grow earnings compared with 1998.'

Falling sales of the Fiesta, which is to be replaced early in the new millennium, resulted this week in the four-day week, which 3,500 assembly line staff at the manufacturer's Dagenham plant have been working since October last year, being extended to September Worldwide Ford profits for the second quarter were a record $2.484 billion, excluding Volvo, compared to $2,381 in the second quarter of 1998.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee