Ford Motor Company (F) Makes Real Progress In Europe

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“Europe is making very good progress in executing our transformation plan, which is focused on product, brand and cost,” said Bob Shanks, Ford’s chief financial officer in a Ford press release. “Our strong cadence of new product introductions, matching supply with real demand and focusing more on retail customers will enable us to meet our goal of being profitable in Europe by mid-decade.”

In the Q2 report, Ford outlines that it has launched seven new products in Europe to improve product offering and quality. It also closed Southampton Assembly and Dagenham Stamping and Tooling in July to reduce capacity and cost. As is evident in the graph above, Ford has improved its brand and market share through quality offerings and a switch of focus to retail sales rather than fleet, which will improve values.

Ultimately, it comes down to what Ford has accomplished so well here in the U.S. – building the company toward sustainable and profitable growth – an endeavor that is now very much on track overseas.

Bottom line
As we keep an eye on the improving losses going into Q3 and Q4, management still stands by its goal to break even in Europe in 2015. The importance of that can’t be overstated because, if all else remains the same, and other factors look to improve, improving losses alone would bring in an estimated $1.8 billion annually straight to Ford Motor Company (NYSE:F)’s bottom line – a huge win for investors over the next two years.

The article Ford Makes Real Progress In Europe originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford.

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