Ford Says Planned European Auto Industry Output Cuts Not Enough image

Ford’s European chief Stephen Odell the 1.5 to 2 million vehicles production cut to be done in the region still leave output above demand.

Ford predicts that auto industry in Europe after the 1.5 million to 2 million cuts, will still be producing around 4 million units annually, which is more than what the market needs. The US automaker forecasts a loss of $2 billion in the European market by the end of this year. In October Ford announced its plans to close three facilities and lay off 6, 200 employees in Europe by 2014.

Odell told reporters that the automaker will keep its target of selling 13.5 million vehicles in the 19 nations in Western Europe, where sales in June increased 6.4%, compared with the overall industry which fell 6.6%. Ford aims at keeping its 7.9% market share in Europe in 2013 and reach profits by mid-decade. Last month the automaker’s share in Europe was 8.2%, an increase of 1% from June 2012.

Ford reported sales up 14% in May and retails were up 17%, accounting for the best May retail sales since 2005. The model which played an important role in this increase was the Fusion, which reached its best-ever May sales, with 29,553 units sold, mostly in the western and southeastern areas of the US.

Source: Reuters