Ford Joins GM in Europe Morass Losing Combined $1 Billion |
| Bloomberg - Oct 29, 2012 |
General Motors Co. (GM) and Ford Motor Co. (F), struggling to reverse growing losses in Europe, will each post plunging profits this week as they take different paths to fixing their operations in that economically ravaged region.
Ford, which will post third-quarter results tomorrow, said Oct. 25 that it’s closing three factories in Europe and cutting 6,200 jobs, or 13 percent of its workforce there. GM, which announces third-quarter results Oct. 31, said last week it would develop small and mid-sized cars, vans and utility vehicles with PSA Peugeot Citroen, in which it took a 7 percent stake in February in an alliance aimed at cutting losses by sharing costs.
Neither move enabled GM or Ford to avoid operating losses of more than $500 million each in Europe in the third quarter, estimated Adam Jonas, an auto analyst at Morgan Stanley. Ford’s action, though, is more definitive than GM’s agreement with Peugeot, which may not be finalized by a self-imposed deadline of Oct. 31.
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- Posted: 2012-10-29 11:07:35
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