Boston, MA 01/17/2013 (wallstreetpr) – Going by the latest sales data released by Ford Motor Company (NYSE:F) for its performance in Europe, it looks like the company is getting many things right in the market. Note Europe’s economic slowdown has put a dent in the profits of automakers playing in the market, Ford being no exception.
But the situation is improving rather fast. In the just concluded year, Ford managed to narrow its losses by improving retail sales while boosting performance of high margin products. The company increased retail sales by 14 percent in 2013, and by this, its overall retail market share in the region went up more than a percentage to 8.2 percent.
The noted increase in retail sales is a positive indicator that the company will register more gains in this segment once the situation stabilizes in Europe.
That Ford Motor Company (NYSE:F) concluded 2013 with improved retail sales is testament that the company is doing well in its efforts to boost performance in more profitable sales while reducing presence in low-margin segments.
New vehicles
Ford’s Europe sales data reveal that new vehicles accounted for most of the company’s total sales. This means that the company is selling more new vehicles than older versions. That Ford Motor Company (NYSE:F) has announced 23 new vehicles this year perfectly answers the trend in Europe and puts the company on the path to more profitability.
Bottom line
Ford Motor Company (NYSE:F)’s revenue in Europe is driven by new vehicles and profits are fueled by focus on the higher margin nameplates. This means that the company is setting itself up for success by launching more new vehicles this year than it did in 2013. Moreover, the move by the company to adopt aluminum for some of its new vehicles will lead to better margins which should trickle down to boost bottom line.
As such, Ford Motor Company (NYSE:F) looks poised to entering profitability and positive free cash flow in Europe by 2015 or even sooner if the situation improves quickly.
