Boston, MA 10/06/2014 (wallstreetpr) – Ford Motor Company (NYSE:F) said that 2014 has been a challenging year for the automaker. The challenges are expected to spill into the next year. However, the company expects better things after next year. That means that you may not want to jettison the stock too soon. Like its peers in the U.S. and elsewhere, Ford looks forward to tapping opportunities in the emerging economies. The company thinks China is an interesting place for the company.
Ford Motor Company (NYSE:F) expects to lose about $1 billion in profits this year. That follows a company announcement that downgraded the original pre-tax earnings target of $6 billion by 25%. The company cited various challenges being responsible for the impact on its profit figure. Among the most prominent challenge are economic slowdown in South America and the geopolitical challenges in Europe caused by Russia’s military activities in Ukraine. Additionally, Ford Motor Company (NYSE:F) expects impact on its profit to come in the form of charges relating to the recall of about 850,000 cars.
Expected Loss
The automaker said business is weak in South American markets such as Brazil, Argentina, and Venezuela. Ford Motor Company (NYSE:F) also said sales in Europe were declining. As such, instead of a breakeven in Europe, the company expects to suffer a loss of $250 million next year. As for the recall, Ford Motor Company (NYSE:F) expects to suffer a charge of $500 million to fix faulty airbags in about 850,000 vehicles.
More to come
After next year, Ford Motor Company (NYSE:F) executives see nothing to stop the company from turning pre-tax profits in the range of $8.5-$9.5 billion. That would be mainly supported by their activities in the emerging markets where China occupies a special place in their world expansion agenda. The company plans to launch 15 new vehicles in China by the end of 2015 as it anticipates big growth in the market. Ford Motor Company (NYSE:F) also announced plans for more new vehicles targeting the global markets. Ford Motor Company (NYSE:F) is not the only company which is looking for China, Companies like Tesla Motors Inc. (NASDAQ:TSLA) and General Motors Company. (NYSE:GM).
Tesla Motors Inc. (NASDAQ:TSLA) has already inked an deal to build 400 charging stations in china while General Motors Company. (NYSE:GM) has announced an investment of $14 billion.
