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Will a European Recovery Boost Ford in 2014?

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New models like the EcoSport SUV will help Ford gain ground in Europe this year. But the pressure to cut prices is still fierce, and that will make profits hard to find. Photo credit: Ford Motor Co.

After months and months of declines, analysts say that new-car sales in Europe could rise a bit this year.

That would be good news for both Ford  (NYSE: F  ) and General Motors  (NYSE: GM  ) . Both Detroit giants have worked hard to reverse billions in losses over the last few years, with turnaround plans that have cut costs and added new models to their respective European lineups.

Both Ford and GM have seen losses in Europe narrow recently, but profits still seem a long way off. Rising sales will help. But as Fool contributor John Rosevear points out in this video, another factor -- the need to offer steep discounts -- is likely to squeeze margins and keep profits away for a while longer.

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John Rosevear

John Rosevear is the Fool's Senior Auto Specialist. John has been writing about the auto business and investing for over 20 years, and for The Motley Fool since 2007.

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