By BILL VLASIC
Published: June 28, 2012
DEARBORN, Mich. — The Ford Motor Company’s chief financial officer said Thursday that the automaker’s international losses would triple in the second quarter, primarily because of much weaker European sales. The executive, Robert Shanks, also disclosed that Ford would consider closing an assembly plant in Europe should demand keep falling.
Ford lost $190 million in the first quarter in its international operations, with Europe accounting for nearly 80 percent of the total. Since then, the market has grown worse, and Ford losses are mounting.
“We lost $190 million in the first quarter, and it will be three times greater than that in the second quarter,” Mr. Shanks said in an interview on Thursday at Ford’s headquarters.
A loss on international operations of $500 million to $600 million in the quarter, which ends Saturday, will depress Ford’s overall earnings for the period. Previously, the company had forecast that international losses for the second quarter would be roughly the same as the first quarter.
“We have good results in North America and solid results at Ford Credit, but international losses will be triple,” he said. “The overall company profits will be substantially lower.”
Up until now, Ford has suffered less from the downward spiral in European vehicle sales than its Detroit rival, General Motors, which is planning to close at least one assembly plant on the Continent.
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