The company is only doing well in the USA
Internationally, things are not going well for the US car manufacturer Ford at the moment. The company is slipping more and more into the red in Europe.
The reason: high special costs and increasing problems in China and Europe. In the fourth quarter of last year, a loss of around 116 million dollars was calculated, according to the company. In the same period last year, however, a profit of 2.5 billion dollars was achieved.
Operating profit fell by 28 percent to $1.5 billion. Even though the figures were weak, the market reaction was calm. Although the car manufacturer is establishing itself well in the US market thanks to the popular SUVs and pick-ups, there are international difficulties.
In the final quarter, European business fell by 199 million dollars. In China, the loss even fell to minus 381 million dollars due to the problems. The company was also in the red in South America and Africa. Ford last made money in North America. The reason for the final ruin of the balance sheet was a write-down of around 900 million dollars on pension plans. The customs dispute between the USA and its trading partner China is another reason for the losses.
Job cuts in the company
Ford CEO Jim Hackett announced months ago that the company would undergo a complete overhaul to reduce costs. Job cuts will also be made: The company announced that it would cut thousands of jobs in order to restructure its European business. Ford employs around 24,000 people in Germany. It remains to be seen exactly how many jobs will be cut.