Friday 3 August 2012

Ford,General Motors profit dips

 

Ford,General Motors profit dips due to poor European sales.US automakers General Motors and Ford are reporting a sharp decline in profits because of poor sales in Europe.GM’s profit  better  because its European division, which includes money-losing German subsidiary Opel, reported a loss of $361 million, a big dip from the $102 million that GM made in Europe a year ago, more than $500 billion that many analysts expected it to have lost after rival Ford (F) reported a shocking $404 million loss in Europe last week. GM revealed on Thursday that its net income for the second-quarter was down 41 percent from a year earlier.The major factor behind the drop was negative earnings reported by its European division following poor sales.European losses also sent Ford’s net profit declining 57 percent year-on-year.
But Chrysler returned to the black from negative earnings a year earlier.The company says decreased dependence on the European market, along with brisk sales in US and Canadian markets put it on the road to recovery.

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