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Ford beats VW, takes No. 1 spot in Europe
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Written by Kevin   
Friday, 16 April 2010
Ford, which said Thursday that it was No. 1 in European auto sales in March, used the occasion to say it opposes European aid for General Motors' struggling Opel unit.

"You should not use taxpayer money to restructure your business," said Wolfgang Schneider, vice president of legal and government affairs for Ford of Europe.

The comments were in contrast to U.S. automakers' ordinarily cordial public stances toward each other. Ford, for instance, never criticized U.S. aid for GM and Chrysler during the recession.

GM, having abandoned plans to sell Opel, is seeking about $2.7 billion in loans and guarantees from European governments.

"We're applying for loan guarantees, not grants," said Opel spokesman Stefan Weinmann. "It's not a handout."

Ford also called for closure of some auto plants in Europe.

With sales expected to decline by about 8% in Europe this year, automakers could drop prices to spur sales and keep their factories running, said Michael Robinet, an analyst at the research firm CSM Worldwide.

"That really hurts margins for everybody," Robinet said.
No. 1 in Europe

Ford unseated Volkswagen, but it might have a hard time holding onto that position.

Ford said that sales of its cars and trucks increased 16.1% in its 19 primary markets compared with the same month last year. That result outpaced the industry's 11.5% increase.

"Ford in Europe has weathered the storm quite well," said Walt Madeira, manager of vehicle forecasting for CSM Worldwide. "Ford has fresh product, like the Fiesta, and the Focus is still holding its ground."

But Pete Kelly, senior director of European forecasting for J.D. Power and Associates, said Ford's sales were aided by a license-plate registration law in Britain that always spurs a spike in vehicle sales in March. Britain, Ford's largest European market, accounted for 37.7% of total sales in March.

Ford also has benefited in Europe from government incentive programs similar to last summer's U.S. cash-for-clunkers program.

Those programs are the most attractive to buyers of small cars, Kelly said, and have helped to fuel sales of the Ford Fiesta and Ka subcompacts.
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Last Updated ( Friday, 16 April 2010 )
 
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