Romania has become an important market for Ford, being on the list of countries with the largest market share of the US car brand after the UK, Ireland, Turkey and Hungary, although the region brought large profits cuts in 2017 for the US company, as profit.ro informs.
Thus, Ford posted a share of 8.9 percent in Romania up nearly 1 percent, corresponding to a volume of 11,800 vehicles, up 2.300 more than last year.
Ford Fiesta remains in peak, despite the 14 percent drop, followed by Focus and Kuga. The Edge and Kuga SUVs are the highest-growth models, and Ford’s chiefs have seen this. That’s why EcoSport is moving to the Romanian plant in Craiova.
In Europe, higher warranty and commodity costs and the effects of Brexit contributed to lower margins and pretax profits. Commercial vehicle market share improved in the region though.
Ford said its quarterly results swung to a profit in the fourth quarter, the second-largest U.S. automaker blaming the miss in part on rising commodity prices and unfavorable foreign exchange rates.
Ford’s battle to improve its margins comes during a declining U.S. market for new vehicles. U.S. sales fell 2 percent in 2017 after hitting a record high in 2016 and are expected to drop further in 2018 as interest rates rise and more late-model used cars come back to dealer lots to compete with new ones.
The company sold more expensive and profitable vehicles, mainly pickup trucks and SUVs, in North America than in other markets.
Fourth-quarter net income was USD 2.4 billion, or 60 cents per share. A year-ago, Ford posted a loss of USD 781 million.