Ford Reviews European Product Lineup, Operations

Ford Motor Co. tells analysts it is evaluating all aspects of its European operations, including capacity and models, to offset an expected loss of more than $1 billion (€812 million) in the region this year, Bloomberg News reports.

Ford Controller Stuart Rowley reiterates to a JPMorgan Chase & Co. conference in New York City that the company's problems in Europe are structural and not the result of a cyclical downturn. Like other carmakers, Ford considers Europe's cost structure and overcapacity as fundamental roadblocks to financial recovery.

Ford is currently using only 63% of its capacity in Europe, according to Morgan Stanley. Overall sales in the region are down more than 6% so far this year. But demand for Ford's vehicles has slumped 10%, largely because the company has resisted deep discounting in an effort to preserve its margins.

Ford, which generates about 25% of its revenue in Europe, has said it does not expect that market to recover substantially for at least five years. In the meantime, Rowley says, Ford will address all facets of its operations there, including structural costs, its product portfolio and the Ford brand.