Ford expects to lose more than $1 billion in Europe in 2012, and plans to restructure operations plan in the region.
CEO Alan Mulally didn’t offer many details about the changes Ford plans to make in the European market. Although he was present in New York at the media event for the launch of the redesigned version of the Fusion mid-size sedan, he focused on announcing that he will not leave the company in the near future.
“My plan is to continue to serve as the CEO of Ford. I think I am really clarifying (my intentions) now. If I had any plans to do anything differently, I would — I would share it with everybody,” Mulally said.
In August Ford’s sales in Europe decreased 29% and the overall industry fell 8.5%. The European crisis is the automaker’s biggest concern right now and together with the prospect of Mulally’s retirement, analysts and investors began to doubt the future of the company in the region.
Last week Ford’s board of directors met to discuss the automaker’s succession plans, and named Americas President Mark Fields, 51, chief operating officer, a move which made all understand that he will be Mulally’s successor.
“There is a tremendous decrease in demand, but we’re absolutely committed to Europe,” Mulally said on the sidelines of the event on Tuesday. “That will involve some restructuring.”