Ford Motor Company (F): Will Surging Sales Outweigh European Losses?

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As some of you know, the majority of Ford’s $100 million in debt is derived from its financial division — not from automotive debt. Ford Motor Company (NYSE:F) takes more than $80 billion in loans as debt and dishes it back out to consumers at Ford dealerships at a higher interest rate — making a nice profit in the process. In 2012, the profit it made from its finance division was $1.7 billion — exactly equal to the loss in Europe. If the rise in vehicle sales has also attributed to gains in its finance division, Ford could be set up for a nice quarterly conference call next week. If the losses in Europe exceed $500 million and investors freak out, sending the stock price downward, I’ll just laugh at the short-term nonsense and pick up more shares, knowing that so many things are going well for Ford.

The article Will Ford’s Surging Sales Outweigh European Losses? originally appeared on Fool.com.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends and owns shares of Ford.

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