Ford Profit Rises on Strong North American Sales
The Ford Motor Company announced a 15% increase in first quarter net income as the company continues to thrive in the American economy. Sales are up by 11 percent in the first three months of the year alone with a bright future ahead. Alan R. Mulally, Ford’s Chief Executive Officer says that the company’s One Ford Plan is working, possibly contributing to the success of Ford in the American market. Despite how well Ford is doing in the American market, Ford is struggling in other markets, specifically in Europe. The company reported losses of $426 million and expects to lose up to 2 billion by the end of the year. Compared to the American market, the European market is weak and the demand for cars is low.
The demand for cars in both the American and European market is a good tool to compare and contrast the two markets. The high demand of new car models in the American economy shows signs of recovery, where people are more willing to spend money in comparison with the weak European market where people are a bit more reluctant to spend their savings on a quickly depreciating asset.
Written by: Wilson Tang