Eurozone crisis to hit Ford profits Second-quarter losses at Ford Motor's operations outside North America could be up to $570m as they come under "increasing pressure" because of worldwide economic problems, the company said. The deepening losses were expected to force pre-tax operating profits at the second-largest US carmaker down to levels "substantially lower" than a year before, Ford added. The company said it was also evaluating the impact of the slowdown on its guidance for full-year profits. Ford issued the announcement after publication of a New York Times story quoting Bob Shanks, chief financial officer, on the worsening outlook. However, Ford's announcement pointedly ignored the story's assertion that the downturn was likely to lead to the closure of a factory in Europe, which the company denied was accurate. The announcement, made after the New York Stock Exchange closed, sent Ford's shares down 3.6 per cent to $9.73 in after-market trading. Ford has substantial manufacturing operations in Europe, which were far more profitable during the 2008-09 economic crisis than those in North America. However, conditions on the continent have become substantially more difficult while US car sales are booming. Edmunds.com, an automotive information provider, expects US car sales figures for June to show a 20.7 per cent increase on the same period last year. Ford said its position in Europe had "deteriorated significantly" since it gave guidance at the start of the year. "Given our strong presence in the region, we are impacted by the serious economic crisis, compounded by an intensifying competitive environment as manufacturers react to lower consumer demand and excess production capacity," it said. Ford South America was facing "growing competitive and pricing pressures" as well as weakening currencies and "unexpected and adverse changes in government policies." Among the adverse changes are Argentina's recent decision to rescind a free-trade agreement on cars with Mexico, where Ford manufactures some vehicles for export to Argentina. Ford Asia Pacific Africa continued to invest and pay for future growth, while not yet fully realising the associated revenue of new products and facilities, the company added. "While our volume is up in the region, our investment and growth costs are rising faster for now," it said. Of the big US carmakers, Ford and General Motors, through its Opel and Vauxhall operations, have substantial exposure to the weakening European market. Chrysler, the third, has far less exposure to the region but is controlled by Italy's Fiat.