Ford sees $1bn loss this year

Thursday 26 July 2012 09:58 BST
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Ford warned yesterday that it faced $1bn (£645.9m) in losses in its European division this year after the car industry slipped deeper into crisis.

The US company said it was already laying off temporary workers and slowing production lines to reflect falling demand for new vehicles, and there would likely be more cuts to come.

At the same time, Peugeot Citroë* was dealing with a protest by thousands of workers threatened with job losses and plant closures.

French ministers raised the spectre of a trade war to protect the country's domestic car industry. Vehicle sales across Europe have fallen almost to a 20-year low.

As well as shortening work days and laying off temporary staff, Citroë* has cut back on advertising and marketing, especially in countries where sales are falling fastest.

Where before the company had predicting $500m-$600m in losses across the continent this year, yesterday it doubled that estimate to $1bn.

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