The Ford Motor Corporation was focusing on the establishment of its strong hold on the Asian market, but was taken aback after a major fall in its net profit from April to June. The company witnessed a fall in its net income by 8%, amounting to $2.4 billion, for the period of Aril to June.

The company claimed that it is due to increase in the prices of steel and other raw materials, used to manufacture vehicles led to the loss in the first quarter of this year. Inspite of the fall, the company assured that they were capable enough to make expenditures in order to incur profits in the future.

Ford was spending more than $400 million in the advertisement sector for its vehicles as they believed investments in the present resulted in profits in the future. Like Ford, Chrysler Group, also met the same fate, it witnessed a loss of $370 million in the quarter.

Overall the business from April to June was satisfactory, though there was a fall in the profit but the company was capable of overcoming its debts. Ford claimed that it had commenced a profitable business in North America, South America, Europe, and Asia Pacific Africa. Moreover, South America’s pretax profits of $267 million were better than profits from Europe’s $176 million.