How Does Ford Compare In Europe With Daimler AG And Volkswagen?

Europe

Ford Motors (NYSE: F), the American auto giant, sells its automobiles across regions like Asia-Pacific, North America, Europe, South America, Africa, and the Middle East. Here, Trefis analysis compares Ford’s sales revenue across Europe compared to its European peers like Daimler AG and Volkswagen, and also how important is the Europe region to Ford. For detailed analysis please check our interactive dashboard – How important is Europe to Ford? In addition, here is more Consumer Discretionary data.

How has Ford fared in Europe with respect to its peers?

  • As we can see, compared to European peers, i.e. Daimler AG and Volkswagen, Ford’s revenue in the European region is lower. All companies have seen a consistent rise in sales revenue in the region.
  • Revenue in European region for Ford increased from $28.5 billion in 2016 to $31.3 billion in 2018. Trefis estimates revenue to increase and reach around $33.1 billion in 2019.
  • Revenue in European region for Daimler AG increased from $70.2 billion in 2016 to $78.1 billion in 2018. Trefis estimates revenue to increase and reach around $80 billion in 2019.
  • Revenue in European region for Volkswagen is the highest among the three compared, and it increased from $152.8 billion in 2016 to $163.1 billion in 2018. Trefis estimates revenue to increase and reach around $167 billion in 2019.
  • Total Revenue has seen a steady and consistent increase over the last few years. Revenue increased from $151.8 billion in 2016 to $160.3 billion in 2018. Trefis estimates revenue to reach $160.9 billion in 2019.
  • North America region has seen a steady and consistent increase over the last few years. Revenue increased from $92.6 billion in 2016 to $96.6 billion in 2018. Trefis estimates revenue to remain flat at around $96.6 billion in 2019.
  • South America region has seen a fluctuation in revenue over the last few years. Revenue increased from $4.8 billion in 2016 to $5.8 billion in 2017 but fell down to $5.3 billion in 2018. Trefis estimates revenue to remain flat at around $5.3 billion in 2019.
  • Europe region has seen a steady and consistent increase over the last few years. Revenue increased from $28.5 billion in 2016 to $31.3 billion in 2018. Trefis estimates revenue to reach $33.1 billion in 2019.
  • Middle East & Africa regions have seen a fluctuation in revenue over the last few years. Revenue decreased from $3.6 billion in 2016 to $2.6 billion in 2017 but increased to $2.7 billion in 2018. Trefis estimates revenue to remain flat at around $2.7 billion in 2019.
  • Asia-Pacific region has seen a fluctuation in revenue over the last few years. Revenue increased from $12 billion in 2016 to $14.1 billion in 2017 but fell down to $12.4 billion in 2018. Trefis estimates revenue to further fall to around $11.3 billion in 2019.
  • Vehicle Financing – Lease & Loans Revenue has seen a steady and consistent increase over the last few years. Revenue increased from $10.3 billion in 2016 to $12 billion in 2018. Trefis estimates revenue to fall to around $11.9 billion in 2019.

What is the trend and relative contribution of Europe region to Total Revenue and Total Gross Profit for Ford?

  • Europe region has been the 2nd highest contributor to Total Revenue over the past few years. The metric has continuously increased from 18.8% in 2016 to 19.5% in 2018. For 2019 Trefis estimates the trend to continue and the metric to stand at around 20.6%.
  • In regards to Gross margin the Europe region has seen a slight decrease in 2018 and is expected to remain flat at 17.3% of Total Revenue for the current year 2019. The contribution of Europe to Total Gross Profit is the 3rd highest over the years and is continuously increasing in % terms. The metric increased from 15.7% in 2016 to 16% in 2018. We expect a further increase to 17.1% of Total Gross Profit in 2019.

Thus, compared to European peers such as Daimler AG and Volkswagen, Ford has a lower sales revenue in Europe but the region is still quite important to the company as it is the 2nd highest contributor to its Total Revenue (nearly 20%). This makes it a very important region for Ford’s growth.

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