Ford’s Highest Q1 Profit to Come From North America image

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