Here is an article from the Wall Street Journal today about Ford closing down their European operations as part of a major restructuring. What appears to be happening is that Ford is increasing its focus on the U.S. auto market, which currently more than offsets its losses in Europe. Ford is clearly showing its commitment to compete with GM and Toyota in the U.S. as well as Asia, and it seems to make sense given multiple complications in Europe with car sales.
GM is also making similar considerations regarding their unprofitable Opel unit. Clearly, Europe is not a region auto makers feel comfortable operating in right now, given extremely poor sales and a bleak future in the near as well as long-term. With these auto makers retreating from Europe, the region will be further impacted and most likely see further contraction. It is reassuring, however, to see these companies’ continued focus on their core products and servicing the U.S. so they stay on top in this market. Do you all think it’s a good idea for them to be exiting Europe right now?