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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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