Overseas Troubles Heighten for Ford, Toyota
Automotive companies Ford (NYSE: F) and Toyota (NYSE: TM) are pulling workers and halting production on cars overseas. Ford is exploring the idea of layoffs and buyouts in troubled Europe, while Toyota is temporarily ending production in China throughout the next month or so.
The Detroit News is reporting that one of Ford's most "problematic regions" will lose hundreds of salaried workers as money continues to be an issue in beleaguered Europe. Although Ford's sales are expected to be up about 4 percent year-over-year through September (according to Goldman Sachs), the company's struggle overseas has not improved much as of late.
"So far this year, Ford sales are down 752,600 units, a decrease of 12 percent compared to the same period last year in Europe's traditional 19 markets," The Detroit News reported on Tuesday afternoon.
The automaker has experienced its fair share of turbulence in Europe lately, as the debt crisis continues to impact consumer spending.
Although the company has certainly had a rough go of it internationally, Ford recently stated that it will break ground overseas in China with its Lincoln line of luxury motor vehicles in 2014 – a move that Toyota surely won't be following anytime soon.
Heightened anti-Japan emotions in China have deterred vehicle demand, leaving Japanese automakers Toyota and Nissan no choice but to close down production throughout October. Tensions have been running high between the two countries due to a dispute over islands in East China Sea.
Meanwhile, it appears that Toyota has nothing to worry about stateside as the company works to improve fuel efficiency and develop next-generation environmental technology, according to Citi.
While the automotive industry remains in a state of flux internationally, many of the main vehicle distributors can expect to see increased sales in the U.S., despite Ford, General Motors (NYSE: GM) and Toyota recalls this summer and potential Canadian union worker's strikes threatening consumer confidence.
Ford was down about 0.69 percent in pre-market trading on Wednesday morning at $10.02. Toyota, down 1.15 percent over the past five days, closed on Tuesday at $80.48.
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