Will a European Recovery Boost Ford in 2014?

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.

These three stocks could help you retire rich
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2792247, ~/Articles/ArticleHandler.aspx, 7/25/2014 11:26:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement