Ford posts £100m profit, but could still sell Volvo
Author: Robin Brown
Published: 24 April 2008
Ford has posted a profit of £100m in the first quarter of 2008, but may still sell struggling Volvo and axe the Mercury brand as its domestic market share in the US continues to shrink.
Rising fuel prices and the impact of the economic downturn means that Ford is still considering ways of reducing expenditure, and alongside laying off workers, idling plants and axing models, CEO Alan Mulally is said to be considering dispensing with the Volvo and Mercury brands.
The move would leave Ford with just tow brands - Ford and Lincoln - along with a majority stake in Japanese Mazda.
In the face of recent losses that totalled over $12bn in 2006, Ford has dismantled its Premier Auto Group since Mulally's arrival - selling Aston Martin in 2007 and currently finalising a deal to offload Jaguar and Land Rover to Indian Tata Motors for a mere £1bn.
Ford's fist quarter profit contrasts with a net loss of $282m in the first quarter last year. Revenues for the period rose to $43.5bn – an increase of $500m on the same period last year.
Ford of Europe posted a pre-tax profit of $739 million excluding revenues or losses from Jaguar or Land Rover.
The new Jaguar XF delivers power, style and refinement. The Germans had better watch out.
The British car industry: Who owns who; what names might return; and whatever happened to Austin, Rover and Morris?
Ford and General Motors were left struggling to survive after market turmoil wiped out their values this week, with current stock values putting the companies at $5bn and $2.6bn respectively.
Launching the Ka and Fiesta small car ranges this year could play a major role in helping Ford ride the 'terrible' market conditions, believes Ford of Europe chairman John Fleming.
The all-new Ford Fiesta is available to buy in the UK now, an event marked by a tango dance 'extravaganza' at the Tower of London.
advertisement
The Lamborghini Gallardo LP 560-4 has been named the ultimate Performance Car of The Year 2008 in CAR magazine’s annual test. | 10/10/2008
Mazda will reveal a four-door saloon version of the all-new Mazda3 at the Los Angeles Auto Show on 19th November 2008. | 10/10/2008
Skoda is releasing the new Superb GreenLine on 13 October - one of the few specialist low-emission saloons on the UK market, available at £16,710. | 10/10/2008
The new Audi S3 Sportback balances great performance and driveability with strong practicality and high quality - but is it priced too highly? | 10/10/2008
Audi has received 25,000 advance orders already in place for future UK sales, having bucked the diving market in September with a rare sales success for any manufacturer. | 10/10/2008
|09/10/2008
The credit crunch is starting to impact on car-buying, with dealers and manufacturers feeling the pinch. But now could be the best time to buy a new or used car, or get good leasing and finance deals. How to make the credit crunch work for you.
|10/10/2008
The new Audi S3 Sportback balances great performance and driveability with strong practicality and high quality - but is it priced too highly?
|10/10/2008
The Lamborghini Gallardo LP 560-4 has been named the ultimate Performance Car of The Year 2008 in CAR magazine’s annual test.
|10/10/2008
Skoda is releasing the new Superb GreenLine on 13 October - one of the few specialist low-emission saloons on the UK market, available at £16,710.
|10/10/2008
Mazda will reveal a four-door saloon version of the all-new Mazda3 at the Los Angeles Auto Show on 19th November 2008.
|20/11/2007
Around 400 people a day risk damaging their car by misfuelling, and filling up with gas is a mistake that could cost thousands. So what do you do if you´ve filled up your diesel car with unleaded petrol?
|01/10/2008
Euro Car Parts has acquired Pinco 1555 Ltd, including all 53 of LSUK's 53 branches, together with subsidiaries M I Diesel Products, Protech Automotive (UK) and Yeovil Rewind.
|06/12/2007
Fuel protests similar to those that brought the UK to a halt in 2000 are being planned by a breakaway group of disaffected hauliers, according to press reports.
|07/10/2008
Euro Car Parts has put out a statement on the closure of LSUK, stating that a closure of the business was unavoidable due to a 'lack of support'.
|06/10/2008
LSUK, thought to have been rescused by Euro Car Parts, has been unexpectedly closed by the new owners with the loss of over 600 jobs.
Search Motortorque:
No readers comments
Be the first to write a comment on this article