Ford Margins Shrink as Buyers in North America Turn to Smaller, Less Profitable Cars

In the first nine months of the year, Ford’s earnings in North America were US$6.47 billion before taxes, more than it had made in the region in all of 2011. Its operating margin in that period was 11.2 percent, more than double the 5 percent that’s the norm in the industry.

Now, however, the Blue Oval says that its profit margins are shrinking and the reason is that new car buyers in North America are downsizing, turning their backs on trucks and opting for smaller passenger cars such as the Fiesta and the Focus.

Read more »