Ford Motor Company is a proof of the tough times that South America is going through because of the deep recessions especially in large markets such as Argentina and Brazil which has resulted to great loss on the company’s end. The Blue Oval reportedly lost around $832 million with their operations in South America two years ago while last year they have reported a loss of $1.11 billion.
In the last quarter of 2016, the Ford Motor Company in South America suffered a loss of $293 million but it is slightly lower compared to the same period in 2015. According to the CFO of the company, Bob Shanks, thinks might be finally improving in the region.
Shanks said that they have been watching out for the whole cycle which has been pretty bad due to the external economic conditions but they are now starting to see it stabilize. They are still considered bad but looking at the figure for the last quarter, it shows that it is almost the same as the year before but there has been a slight increase.
Shanks admitted that despite the fact that the major metrics of Ford is still not in the good spectrum, there is a reason for them to see things in a positive light. The good news is that by looking at the key metrics of the company, you can see that there is a slight improvement in the pre-tax at $2 million. It is the first time that the company has seen any type of improvement ever since the third quarter back in 2013.
Shank also shared that the company is tracking economic factors and it seems that improvement is not that far. They are expecting to see some positive changes by next year around the second half.
Due to the positive direction that the company is seeing with the key metrics, they believe that the economic depression is starting to bottom out and will end sooner than later. Economic cycle is expected to turn by next year thus their losses are also expected to improve. For tourists, next year would be a good year for the South America thus a tour would be appropriate. Bookings can be done online through booking websites such as www.southamericatours.com.au.