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.
Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.