July has not been a kind month to Ford Motor Company. Just announced last week, Ford's recently released 2013 Ford Escape crossover suffers from two recalls including a defect concerning an urgent risk of fire. Following the story, iMotor implicated that the recall's negative effect on the brand's image could potentially cause Ford's July sales numbers to fall more than expected. We were wrong.
On Monday, Ford announced a $2 billion profit for Q2 in the North American market. In fact, this marks the second $2 billion quarter in a row for Ford North America.
However, it's a completely different scenario in foreign markets. Ford suffered a severe nosedive of $465 million in international losses, with $404 million in losses directly caused by the economic uncertainties in Europe that have led to increased unemployment and dropping consumer confidence. By year end, Ford projects total profits are expected to reach $1 billion. While $1 billion is certainly an enormous sum, Ford posted a profit of $2.4 billion during Q2 of last year, translating the latest report into a severe 58 percent decrease from 2011.
In Asia, Ford posts a $66 million loss mostly due to costs associated to sharp investments on new products.
As for South Africa, Ford posts a $5 million profit, up slightly from last year but still facing concerns from growing competition, pricing pressures, weakening currencies and changing in government policies.
[Source: Detroit News]
