Ford Profits Fall Short after Lack of sales
Ford managed to shift 1.57 million vehicles last year, a rather impressive amount; but for the world’s second largest car manufacturer it’s not quite good enough.
Reports show that fords sales have declined by 21,000 compared to the year earlier, and in North America alone, sales fell by a staggering 39,000.
It can be argued however that these statistics are not a true representative of the trend in fords sales; as the introduction of two new cars have affected sales a lot, particularly in North America; the new F-150 pickup and new Ford Edge SUV are finishing production and are in in transition to being sold into car dealerships; it just so happens that these are also two of Fords top selling models, meaning that since these two cars are currently not on the market, the keen motorists that are interested in them are holding on to their wallets and patiently waiting for an opportunity to purchase one of Fords brand new releases.
In contrast, Ford explained that they are expected to have a “breakthrough year” and have high hopes for 2015.
Mark Fields, chief executive, commented on fords recent progress and explained that Ford would “grow progressively stronger” as recent launches “start to pay off”.
Ford defend their recent profit loss as they explained that “The results were lower than analysts had expected” because they had forecast a tax rate of 29% for the quarter, while Ford paid 34%.”
Ford’s attitude remains hopeful, but quite frankly, the statistics tell a different story; Fords revenue generation throughout South America declined by 20% and the company failed to break through the red region as it lost $189m from its campaign of the “One Ford” range. Though, it must be said that this was still a large improvement from the prior year, as in 2014 the company lost $510m.
Meanwhile, in Europe the sales of Ford vehicles rose by 2% to 376,000 as there was an increase in demand for Fords commercialised vehicles such as the Ford Transit Van, and in Asia Ford managed to return a profit of $103m as their sales rose by 16,000 to 366,000
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