According to Automotive News Europe, Ford of Europe is a bright spot in an otherwise dismal global picture for struggling Ford Motor Company.

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Despite higher raw materials costs and increasing competition from Asian brands, Ford of Europe looks set to post a modest profit in 2005. This would be its second straight annual year of profit.


In January, Ford of Europe advised that it would post a $100m (EUR85m) to $200 million profit this year. That guidance remains unchanged, said company spokesman Ian Slater.


For the year so far, Ford of Europe is $70 million in the black, despite a $55 million third-quarter loss. Ford is still trying to cut costs in Europe and will have cut 2,600 hourly and salaried jobs by year-end.


Ford’s luxury Premier Automotive Group is still struggling. The unit has lost $146 million this year. Ford of Europe and PAG financial results are reported separately. PAG’s losses are mainly due to struggling Jaguar.

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