Ford Motor Company (NYSE:F) is finally getting a good response from the European market after six successive years of declining sales. The European subsidiary of the automobile giant has recorded 7% increase in vehicle sales during the first eight months of the fiscal year 2014.
The primary reason for sale improvement is the Kuga sports utility vehicle, which has shown continuous growth in sales and the European car market is finally on the path of recovery. Despite of the slowing growth rate in Europe, Ford Motor Company (NYSE:F) is hopeful to reverse its growth graph, which has been declining for the past six years. According to the European Chief of Ford, Roelent de Waard, “We don’t believe there is a downward risk.”
As compared to the last year, Ford Motor Company (NYSE:F) sold 762,900 vehicles in the first eight months until August unlike 712,400 vehicles last year. The company witnessed 14% growth in automobile sales in August with 61,700 vehicles. One of the key reasons for Ford’s success is its ability to attract customers that purchase large fleets of cars. Earlier this month, Ford Motor Company (NYSE:F) received a large fleet order of 800 new 2015 Transit Vans from Charter Communications, Inc. (NASDAQ:CHTR).
Waard further added, “Pricing pressure has not changed.” Ford Motor Company (NYSE:F) was able to increase retail sales contributing to 8.5% of its overall sales in August. Earlier, this week Ford Motor Company (NYSE:F) recalled older models of Ford Escapes and Mercury Mariners with a possible overheating problems in their hybrid electric system. The company is planning to recall as many as 74,000 vehicles in the process, although no accidents related to the problem have been reported until now.
This article has been written by Prakash Pandey.