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Are right and take a look at her body at shares of Ford right now the stock is actually down about seventeen cents 1170 is the last had a loss of one and a half percent the company's earnings.
Beat the street but we're 20% lower year over year due to weakness in Europe and China Liz -- joins us now -- -- and CEO Alan Mulally.
Let's outpacing that -- and weakness in China and Europe Dennison -- but not North America for once.
We bring in Alan Mulally and Alan great to have you here let's let's drill down on that right away because.
You guys were very clear about your guidance about how Europe would be -- -- analysts were certainly appreciative of that 'cause they were prepared for it.
But perhaps weren't prepared for how sort of stronger North American earnings looked up 289.
Million dollars year -- -- the best since 2000.
You're out there in the trenches how is the US auto buyer doing right now what is the sense of it.
As we look what we've just the shot help out we're gonna try and reestablish with Alan Mulally -- just a moment he's in Dearborn Michigan that.
And as we re establish that let me just get through some numbers here for you those numbers in North America Sherlund Dennis 289.
Million dollars higher if for a total of about two point one billion of weakness.
China -- And Europe now this as Ford is pumping up investment in China.
Which is rather stunning because there's a little bit of weakness there but that's how Alan Mulally works I think we've reestablished and -- they're out.
Kind of like you're really just -- are at let's if we can see there you are.
The blue oval man himself okay.
Now we start the interview is about the clock ticking don't feel like time port all right let me get to this so what.
The US auto buyer doing mr.
Well it really is going pretty well Liz you know clearly -- economic expansion is slower than what we've had in the past following recession but.
We're recovering from a very deep recession another thing.
That's very interesting for us as the average age of the vehicles in the United States.
Is approaching eleven years and when you look at what she can get with a new Ford vehicle on quality and fuel efficiency and safety -- course -- Smart design.
You can argue that you can economically -- sleep that older vehicle so we're seeing a lot of interest in our vehicles and of course.
-- viewed as you have reported we invested in our new vehicles during the worst of times so we have that complete family now best in class vehicles available for the customers.
Let's get a sense of China now China showed some weakness here and now obviously we've seen a slight slowdown but they still have growth.
Again you're investing big time if you could predict what.
The most preferred Ford vehicle will be to the Chinese consumer what are you seeing on the ground there.
Well they really like that family is and as you as you've seen -- -- last couple weeks of the Beijing auto show.
They not only loved it yes that a focus in the fusion but the smaller the smaller suvs the escape.
The -- sport which is a great utility vehicle.
In addition to the larger vehicles like the -- so I think that that full family is going to be really appreciated in China going forward.
This is kinda weird and I was seeing that there seems to be -- an increasing number of serious accidents as the Chinese Dreifort gets on the road in bigger numbers.
They're looking at suvs.
What SUV afford -- you look at SA dot perfect for the Chinese consumer reporter ramp up pushing that one.
Well I think the crossovers.
As well as the escape.
And also with the -- sport are right there in the sweet spot of what they left.
But we got to remember -- they actually low the smaller medium sized vehicles like the fiesta -- the focus and the fusion just like United States.
But so interest in list is the requirements from the consumer reported you have really coalesce around the world.
No matter what size -- they want the best quality the best fuel efficiency.
Every bit of the safety features the course really Smart design like us think in my -- so that's why our global platforms are -- so well of course with our scale.
And our global platforms we can offer those more affordably than in than our competitors.
I don't want to spend too much time on Europe because we all know there's weakness in Europe but.
How do you mitigate a slow down there that seems to be obviously continuing what is for doing right now.
As far as guidance is concerned so that you can continue to let all shareholders know here's what we expected don't expect from Europe.
Know exactly is very important to all of us -- and when picking -- -- just point out for everyone that in Europe over the six -- of the last G-8 years we have operated profitably.
And the reason is that every year we have -- our production to the real demand to continue to improve our quality in our productivity.
So even though we have this more rapid slowdown over the last year and a half.
We are continuing take action to match our production bring it down to the real to me and and take action on the cost side so we can mitigate these losses.
We also provided guidance that we will expect to lose between 50600 million dollars.
In Europe this year as we make this transition to a better plan to deal with this environment.
You know I want to reach back a couple of years when we were a brand new network here at Fox Business march of 2008 you came here to our studios.
And you you were putting forth and decent idea.
And it's interesting you know reaching back to that time it was it was a time really Wear nice careless but -- explicit spyware.
-- you said I wanna go Green this is extraordinarily.
Important to push for Green.
You know now you've got the all electric focus this is a fascinating a development as -- -- -- but it's expensive looking at that price point -- a hurdle and suddenly attacks from frankly mostly conservatives against the General Motors -- and the Nissan leaf when they're almost.
The tried to drag it down and -- in saying that I've just because the government is giving incentives and by the way that was the Bush Administration that that rubber stamp those incentives but.
Just I found you I mean.
Is this a nation that should be pushing forward to all electric vehicles have you read that as you push forward at Ford for a greener car out there.
Well as I -- I -- really remember our conversations in 2008 and you know with our recent conversations were about the Ford strategy going forward which was gonna be very different than our competitors.
Because we were gonna commit to a full family of vehicles small medium and large cars utilities and trucks.
And -- it every vehicle it came from four you can get the best quality fuel efficiency safety and really Smart design.
And on the fuel efficiency we have really delivered on that brand promise but we do -- with the power of choice so when you walk into a for -- today.
Say just on the focus alone of the fusion.
You can get a petrol version a -- version a hybrid a plug in hybrid little bit bigger battery or an all electric as you described.
And so what we want to do is have the vehicles are people really do one value that works for their lifestyle.
Where -- -- in the city -- the rural north are charging requirements are.
That you can get the vehicles are really work for you because we really do believe on fuel efficiency that we are going to be paying more for energy going forward.
And these options are gonna be very much appreciated by the consumer.
Alan Mulally giving the consumer some choice for pushing forward with the all electric vehicles thank you very much we'll see you next time thanks.
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