The true impact of the U.K.’s decision to pull out of the European Union is beginning to rear its ugly head in the automotive industry.
Despite the fact that Ford posted £65 million ($86 million) in losses in Europe — which it says were the result of Brexit — the automaker recorded a net income of $1.59 million in the third quarter, according to Auto Express.
Ford’s earnings during the period that ended Sept. 30 largely were bolstered by its SUV and truck sales in the United States.
“Europe will be the only thing I can see in the results that will be a surprise,” Ford chief financial officer Bob Shanks said on an earnings call.
Shanks claimed that the “Blue Oval’s” poor performance across the pond can be “almost fully explained just by Brexit effects.” Another contributing factor, however, reportedly was the cost of launching the next-generation Fiesta lineup, which Ford will not sell in the U.S. due to waning interest in small cars.
Thumbnail photo via Ford