Don’t Be Worried About Ford Motor Company (F)’s European Losses

The company is doing great in China as well. The Ford Focus has already been pronounced as the best selling passenger car of 2012, way ahead of any other passenger car made in China. The boycott of Japanese cars in China in the second half of 2012 has helped by allowing a competitive edge over the likes of Toyota, Honda, etc. For instance, thanks to these boycotts Toyota’s sales were 25% below expectations. Meanwhile, the “15 by 15” strategy that Alan Mulally has devised for China looks quite promising if performance of the Focus is any benchmark. As part of this strategy the company plans to introduce 15 new Ford models by 2015. It is well accepted that Ford has entered China much later than other car companies like Volkswagen and General Motors and has to catch up a lot. However, Ford is leaving no stones, unturned with its investments in China already crossing the $5 billion mark. The company’s third assembly plant in Chongqing is expected to commence operations in late 2014, while the Hangzhou plant should be operational in 2015. Despite slowing down, the Chinese market is still growing at a decent rate and Ford is well-positioned to reap rewards.

All in all, whatever Ford stands to lose in Europe there are enough good things happening elsewhere that the company as whole remains as solid as ever. There is a lot that the investor community expects from the Blue Oval, and they should not be disappointed.

The article Don’t Be Worried About Ford’s European Losses originally appeared on Fool.com and is written by Tina De.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.