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Ford Isn't Worried About European Auto Market Consolidation

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Ford Isn't Worried About European Auto Market Consolidation

General Motors Company (NYSE: GM)'s decision to sell its Opel/Vauxhall subsidiary to PSA Group failed to not only excite shareholders, but it also failed to intimidate its peers in Europe.

Speaking to CNBC from the sidelines of the Geneva Motor Show, Ford Motor Company (NYSE: F)'s executive vice president and president for EMEA Jim Farley said that the Detroit automaker believes it will continue to see growth in the European continent.

The executive said that in 2016 Ford realized a record profit in Europe with an operating margin of nearly 4 percent. The strong performance was driven by a diverse product mix across the continent and the company will continue introducing new cars in the market, including the next generation Fiesta ST and a line-up of electric cars and automated vehicles.

"This is still a key market globally for new technology roll-outs," Farley emphasized.

Despite the heightened competitive landscape, Ford remains committed to achieving a 6 percent operating margin target in Europe. But the path forward will come with a set of challenges.

Farley cited Brexit concerns moving forward and the potential for currency volatility. However, the executive is confident that the British government will ultimately reach a zero-tariff agreement with the European Union in the future.

Related Link: Global Auto Sales Set To Reach 93.5 Million In 2017, But Risk Is Greater Than Ever, IHS Markit Says

Related Link: Vetr Crowd Upgrades Ford

 

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