Updated 12:54 PM EDT, Fri, Sep 18, 2020

Ford Records Profit Surge But Incurs Big Loss in South America

  • +
  • -
  • Sign up to receive the lastest news from LATINONE

American multinational automaker Ford Motor Company had record-breaking earnings last year worldwide, though it incurred big losses in South America.

Michigan Radio said the company earned $7.4 billion in 2015, but it also experienced a big loss in South America, with an estimated $832 million deficit.

Ford chief financial officer Bob Shanks mentioned in the same report that the company is exploring its best options to recover from their slump in South America.

He noted that their sales were greatly affected by the recession in Brazil and the "lopsided currency valuations" that made the economy and industry unstable.

"We're doing everything to ride it out so when it turns around we're able to reap the rewards," Shanks said as he expressed hope that they will recover in the region.

He noted that they remain focused on reducing costs for their vehicles if possible.

But despite the poor performance in South America, Shanks noted that Ford is doing great in other parts of the world.

In the Michigan Radio report, he noted that its workers should expect a good profit share for the previous year.

"The UAW-represented employees throughout the company will get an average $9,300 profit-sharing if they worked for the full year and that is a record," he added.

According to InsiderLouisville, the large profit of the company is partly because of the strong sales in North America, where a pre-tax profit of $9.3 billion was produced.

The car maker also announced that in 2015, it was able to sell the highest number of vehicles in 9 years, with the F-Series being the brand's top vehicle again.

Aside from North America, Ford also performed well in Asia with a 29 percent rise in the pre-tax profits.

Meanwhile, NDTV mentioned that the car company recovered well in Europe with $259 million in profit. In 2014, Ford had a loss of $598 million on the continent.

This development in the European market was attributed to the restructuring of operations, which included the closure of plants and job cuts.

It was added in the NDTV report that the gain in Europe helped to offset the losses in Latin America.

Ford President and Chief Executive Officer Mark Fields promised to continue honing the strengths of the company and accelerating their goals.

He said that this will be done "while transforming Ford into both an auto and a mobility company and creating value for all of our stakeholders."

© 2015 Latin One. All rights reserved. Do not reproduce without permission.
  • Sign up to receive the lastest news from LATINONE


Real Time Analytics