Ford profits halve as rivals book a good quarter

Ford factory worker

FORD has posted a huge slump in its global third-quarter earnings as demand in its home markets in North America dried up.

The carmaker posted a flat US$1.0 billion ($A1.3b) result for the quarter, down more than 56 percent on the record number it pulled for the same three-month period last year.

Ford -factory -worker -assembles -Ford -engineThe slump comes off the back of fewer sales of cars and SUVs in North America, a US$600m blowout in the cost of recalls, mainly to fix faulty door latches, and expenses relating to the launch of a new aluminium-bodied Super Duty pick-up truck.

The only shining light for the second-largest US car brand’s quarter appears to be the Asia-Pacific region, which pushed its earnings to a record high of US$131m, a US$109m million turnaround from a year ago.

Ford -factory -worker -assembles -Ford -F150-rouge -truckFord’s struggle is in stark contrast to rival and market heavyweight General Motors, which this week posted a record US$2.8b third quarter result. In contrast, Fiat Chrysler Automobiles posted a €606 million ($A870 million) Q3 result, up €100 million over the same period last year, prompting it to raise its full-year earnings forecast.

Significantly, Fiat Chrysler has raised its share of the US market by 12.5 percent in the quarter, seemingly mostly at the expense of Ford.

Ford -factory -worker -builds -Ford -F150-rouge -truckAdding to Ford’s pain is Californian electric car maker Tesla, which this week posted a record US$22m profit for its third quarter – the second time the company has signed off a quarter with its books running with black, not red, ink.

Part of Tesla’s record-breaking result came from selling pollution tax credits to other carmakers.

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