Automotive News Europe reports that Ford’s European operations and its Swedish unit Volvo both lost money in the first quarter. Ford of Europe reported a pre-tax loss of $550 million for the quarter, compared with a profit of $739 million a year ago.
Volvo’s pre-tax loss widened to $255 million, compared with a $151 million loss a year ago.
Ford said in December that it was conducting a strategic review of Volvo, which includes a possible sale of the carmaker.
Ford said its European unit’s loss was “largely explained by lower industry volume and a reduction in dealer stocks.”
First-quarter revenue for Ford of Europe was $6 billion, down from $10.2 billion a year ago, Ford said, reflecting the economic weakening in most European markets.
Volvo’s widening loss was caused by lower industry volume, lower market share, dealer stock reductions and unfavorable net pricing, Ford said. The loss was partly offset by structural cost reductions.
Volvo’s first-quarter revenue was $2.6 billion, down from $4.2 billion a year ago.