Ford Motor’s European operations still expect to make a profit in 2006 despite tough pricing and dearer raw materials, Ford of Europe chairman Lewis Booth told Reuters on Tuesday.

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“We have declared that we will be profitable in Europe this year and we expect to stay there,” he reportedly said on the sidelines of a ceremony marking the production launch of the Ford S-MAX and Ford Galaxy models in Belgium. He declined to be more specific.


Reuters noted that Ford had previously said its European operations were set to post a pre-tax profit this year excluding special items.


Booth, who also heads Ford’s Premier Automotive Group (PAG) of premium European brands, said Ford expected to make a 2006 profit in Europe both before and after tax, according to Reuters.


He reportedly said European market share for Ford of Europe was essentially flat compared with most of its western competitors, whose market share was slipping during an assault from Japanese and South Korean producers.

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Within PAG, market share was a bit under threat for Jaguar, while Land Rover just had its best month ever, and Volvo was coming back on track, he said.


“We feel pretty good about market share this year,” he told Reuters.


Overall market conditions remained tough as the net price of cars goes down and commodity prices rise, he told the news agency, adding, “it will be another challenging year”.
In a statement cited by Reuters, Ford said it plans to manufacture around 86,000 new S-MAX and Galaxy vans in Genk this year. The new models go on sale next month in the major European markets.


At full capacity, Genk can build up to 550 S-MAX and Galaxy vehicles a day, together with 600 Ford Mondeo cars that are also produced at the plant, the company reportedly said.


The S-MAX and Galaxy share an assembly line with the Ford Mondeo, so Ford can adjust output to meet demand.


Genk will also produce the next generation Mondeo from 2007, Reuters noted.