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.