Ford is expected to report increased profits for the first quarter in North America.
Analysts predict that Ford’s first quarter profit will surpass the $1.4 billion reported during the same period last year. Ford expects this year to lose $2 billion in Europe and profit in South America to be affected by currency fluctuations. The best results are to come from North America, where sales increased 1% compared with last year. The company relies on stronger demand for its Escape and Fusion pickup trucks.
J.P. Morgan predicts that Ford’s production in the first quarter increased 1% in North America, 5% in Asia Pacific, dropped 2% in Europe and was flat in South America. Ford continues to make investments to expand in the Asia Pacific region, after sales in China were up 54% in Q1 due to the Fiesta and Focus small cars. At this year’s Shanghai auto show, Ford unveiled four crossovers: the Kuga (Escape), the Explorer, the EcoSport and the Edge.
Last year Ford’s share of the Chinese auto market was 3% and the automaker relies on a collection of new products to increase the share to 6% over the next three years. Although Ford had a later start in the Asian country compared with the industry leaders GM and VW it reached a 3.6% market share during the first quarter, an increase from 2.5% in 2012.
Source: Detroit Free Press