Ford Motor Co posted a 37% drop in its third-quarter net income compared with a year earlier, the Wall Street Journal reports, pointing to troubles in the European and Chinese markets as the company struggles to get its comeback plans of the ground.
Better than expected results in North America were offset by a continued slump in China, a market which is itself on course for a rare yearly decline after decades on consistent growth. The company appointed a new China head this week, after the position had been vacant for most of the year.
Ford made a $102 million profit during the third quarter of 2017, but this flipped to a $378 million loss this year. The company is losing ground as the industry has continued to grow, albeit at a slower rate. Chinese car sales were up 1.5% in the year through to September, but Ford’s sales declined 30%.
Following the earnings, Ford’s Chief Finance Officer Bob Shanks said that the company had shelved its target of an 8% operating margin by 2020, naming trade war tariffs among the headwinds.
To prepare for a likely further slowdown in China, Ford will be producing fewer cars in accordance with lower demand, said Shanks.