Ford Motor Co. stated it doesnt intend to make further cuts in its production capacity in Europe as the market begins to stabilize. “We’re at the point where we have no more capacity announcements to make,” Stephen Odell, Ford’s Europe chief, told reporters yesterday at the company’s headquarters in Dearborn, Michigan. “Weve always said, though, that we’ll monitor the situation and if there were more catastrophic, as-yet-unpredictable changes, we would react to them. We feel that weve taken appropriate action.” he added for Bloomberg.
Ford calculated that company would break even in Europe by 2015. The car manufacturers sales in its 19 main markets in Europe gained 6.4% in June, not being hurt by 6.5% decline of industry. That performance boosted Ford’s market share to 8.2% from 7.2% a year ago, the company said.
The Fords Europe chief said the industry is showing signs of stability based on positive indication in industry data.
Ford is introducing new models such as EcoSport compact sport vehicle in Europe to help reduce exposure of low-margin sales to rental-car companies and dealer self-registrations. It also wants to create more of higher-profit sales to retail and company-fleet buyers.
The company plans to lower its share of deliveries to rental fleets to less than the European industry’s 13% average by early 2015 from 17% now, Roelant de Waard, the U.S. company’s head of sales for the region, said last month in an interview for Bloomberg.
In October Ford indicated its closing three factories in Europe by 2014 which was followed by protest, disrupting supply at the factory contributing to decline of sales at the beginning of the year.
Companys share price rose 1.56% yesterday piling on 31.12% year to date raise.
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