Europe and South America Cannot Stop Ford Motor Company (F)

Two things to watch out for in GM’s upcoming earnings release are its margins and its take on Europe. General Motors Company (NYSE:GM) has been trying very hard to match Ford’s US margins, but it has not been able to grow them beyond 6-7%.

On the European front we would look for a status update on the company’s Drive 2022 plan intended to nurse back the loss-making Opel subsidiary to health. General Motors Company (NYSE:GM) has lost some $18 billion in Europe since 1999 and is aiming to get back to profitability by 2015.

For Toyota Motor Corporation (ADR) (NYSE:TM), which managed to retain its position as the world’s largest automaker in the first quarter, the problem is not Europe where it has a much smaller presence. The company is actually hoping to make a small profit in the region this year.

But the Japanese auto giant is facing trouble in almost all its core markets. In the US it is suffering from the slowing sales of Camry and Prius. It would be interesting to see if the Ford Fusion, which is already a force to reckon in the mid-size segment can win over more Camry loyalists over the coming months.

In China the territorial disputes are resulting in lost sales, while on the home turf Toyota Motor Corporation (ADR) (NYSE:TM) is hurt by the end of subsidies for eco-friendly vehicles. The company posted 13% and 15% y-o-y declines in the two markets respectively.

Parting thoughts

Ford remains a winner despite its struggles in Europe and the weakness in South America. The company is planning ahead and has clear strategies in place that will fuel long term growth.

The article Europe and South America Cannot Stop Ford originally appeared on Fool.com.

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