 Cost cutbacks mean Ford loses money on car sales |
US carmaker Ford Motor has reported better-than-expected profits, despite its car sales running at a loss. The group beat forecasts by posting a $266m (�148m) net profit for the three months to September, improving from a $25m loss a year earlier.
But the positive number was built on healthy profits from the finance packages it sells its customers.
Heavy cost cuts in an attempt to stay competitive mean that the firm lost more than $600m on vehicle sales.
Of its automotive operations, only the Asia-Pacific/Africa division turned a profit.
A sharp rise in profits from lending kept the firm in the black.
Revenue was up from $36.7bn to $39bn.
Cuts
US car sales have been boosted by deep discounting and generous finance packages in the past few years.
Elsewhere in the world, pricing pressure has also been fierce.
The result has been that carmakers - particularly in the US and Europe - are seeking deep cost savings.
In the UK, 1,150 workers at iconic marque Jaguar are likely to lose their jobs.
Elsewhere, workers at several General Motors' plants in Europe are out on strike in protest at layoffs the firm is planning.
Last week, GM announced a loss on car and truck sales in the third quarter for the first time in six years, largely because of losses in Europe.
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