Fleet News

Ford losses expected as GM profits take a dive

FORD is expected to report record losses in the UK in its annual results as its parent company announced a sharp fall in worldwide profits. Ford's UK arm is preparing for losses of more than £100 million plus a one-off restructuring cost of £300 million for 2000 when its results are published in June.

Ford of Britain recorded a pre-tax loss of £119 million in 1999 on sales of £6.29 billion, but last year's turnover is believed to have remained level. The restructuring costs come from job losses at the Dagenham plant. In the US, Ford Motor Company's pre-tax profits for the first three months of this year were $1.6 billion (2000: $3 billion), and the company saw its share of the North American market fall from 24% to 22.6%. Worldwide vehicle sales were down 6% to 1.8 million from 1.9 million in 2000.

Meanwhile, General Motors recorded pre-tax profits of $47.7 million in the first quarter of 2001 (2000: $2.6 billion). The company said results were affected by lower volume and continued pricing pressures.

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