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Ford earnings decrease in second quarter

Ford recently announced a 57 percent decrease in earnings for the second quarter as a result of the economic downturn in Europe.

Ford's net income decreased to $1.04 billion with the losses from operations in Europe offsetting a strong performance experienced by the automotive market for the car company in North America.

“Europe is a significant challenge,” CEO and Chairman Alan Mulally said in a conference call. “We have made money there six out of the last eight years, but they’re seeing a very significant deterioration in the economy and the industry.”

General Motors and Chrysler will announce their second-quarter financial results next week, but analysts are predicting a similar outcome for the other two companies, which have experienced a boost in sales in the United States but losses overseas.

Ford had previously warned of a downturn in the European market, which would result in more than $1 billion loss, leading some analysts to suggest that the company close the plant to reduce its production capacity.

The automaker recently announced its new C-Max plug-in, which is expected to compete with the Toyota Prius and send more Americans to new car dealers to secure an auto loan for the electric car.

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