The loss making European unit of the second largest US automaker is increasingly bullish about its prospects in the region after posting stronger than expected results during the first quarter.
For example, the company has already sold 2,000 Mustang cars even as the iconic 50-year old muscle car has not even reached European dealerships. Additionally, after General Motors decided to almost entirely desert the Russian market both dealers and prospective buyers have turned to Ford’s outlets. Across the continent, the stronger turnaround as well as government incentives in certain countries will keep up the strong prospects for increased deliveries after the positive results in the first quarter, commented Peter Fleet, vice president of sales for Ford of Europe. The US automaker’s European division delivered 335,100 units across its top 20 European markets during the first three months of the year, jumping 12.5 percent from the same period in 2014. Also, after the strong result in the quarter, industry forecasts for the entire continent put total sales up to 15.6 million vehicles in 2015.
According to the Ford executive, the company has a more conservative prediction, believing the overall region to be on pace to reach 14.8 million to 15.3 million units this year. Last year the tally stood at 14.6 million autos. “There is still overcapacity out there with cars looking for homes,” commented Fleet. He added that there are also numerous signs of underlying industry strength and positive consumer confidence as they have more money to spend.