Ford Exec: European Market Will Not Fully Recover for Years
“There are indications that an end of the decline may come in the second half of this year. However, a recovery of the market, we estimate, will take at least five to six years,” the chief executive of Ford of Europe, Stephen Odell, told the German newspaper Frankfurter Allgemeine Zeitung.
In the first quarter, and for the past several years, Ford’s (NYSE:F) operations in recession-plagued Europe have left a dark mark on the company’s results. Yet, Ford has rolled out strong quarterly earnings several times this year, showing that automaker’s turnaround was on strong footing despite posting ongoing losses in the region.
The second quarter’s losses in Europe shrunk from the $404 million recorded in the year-ago quarter to $348 million, contributing to the 19 percent increase in net income the company generated. Now, the European car market is showing the first signs of improvement even though demand across the region fell to its lowest level since 1996 just two months ago.