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Overseas Operations Weakening, GM, Ford Heading for Big International Losses

Ford sees $500 million loss abroad, GM $1 billion in Europe.

by on Jun.29, 2012

Ford CEO Alan Mulally -- the maker now anticipates big losses overseas.

An economic meltdown in Europe, a slowdown in China, weakening currency and new trade barriers in South America. The situation is getting bad for the auto industry, and both General  Motors and Ford, in particular.

The smaller of the Detroit makers now anticipates overseas losses to reach $500 million for the second quarter, a heavy anchor on earnings from the recovering North American market.  GM, meanwhile, expects the red ink from its long-troubled European operations to reach around $1 billion.

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Noting its “operations outside of North America are under increasing pressure,” Ford warned in an SEC filing that “Our combined results for the second quarter for Ford South America, Ford Europe, and Ford Asia Pacific Africa could be a loss of about three times as much as the $190 million pretax loss incurred by these operations in the first quarter.”

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