Ford Sales in Europe Drop Sharply

Ford Motor Co. reports that it sold 124,200 passenger vehicles in western Europe last month, down 16% from June 2011 much worse than the 1% dip the company estimates for the overall market.

Ford says its volume was lower in part because it chose not to match the heavy discounts of some competitors.

The company warned investors in late June that it expects a "substantially lower" operating profit in the second quarter of this year because of deepening losses overseas. Ford says market conditions in Europe have "deteriorated significantly" since the beginning of 2012.

The company's sales in western Europe in the first six months of 2012 fell 10% to 733,900 vehicles compared with an estimated industrywide drop of 5% to an 18-year low of 9.52 million units. But demand for Ford vehicles jumped 18% to 63,400 units in Russia and 15% to 25,900 units in eastern Europe in the January-June period.

The company predicts its sales will improve in the second half because of the launch of the new B-Max mini MPV and next-generation Fiesta supermini.