Ford, GM Shares Soar on Europe Fixes, Earnings Beats
Ford announced its Europe restructuring plan last Thursday. Ford will close three production facilities, expected to result in annual gross savings of $450 million to $500 million, while introducing 15 new global vehicles.
"In the U.S. over the last few years we have taken very dramatic action to size our production to the real demand (and) to cover more of them market segments," said CEO Alan Mulally, on the Ford earnings call. "We know this is exactly the right thing to do.
"That's really what we announced last week with our plan to accelerate the transformation of our business in Europe," Mulally said. "No business is sustainable if it continues to lose money."
In a report Wednesday, Jefferies analyst Peter Nesvold held out hope for the entire automotive industry, writing that "Europe's automotive industry has a dreadful market structure. After years of kicking the can down the road, the industry's time of reckoning surely seems to be near."
Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted ReedSelect the service that is right for you!
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