FORD'S European operations have reported losses of $291 million (£180 million) during 1996, compared to a profit of $116 million in 1995. Ford puts the drop down to the highly-competitive nature of the European markets, which have seen a shift to low-end cars and increasingly high incentives from the majority of manufacturers.

Ford Motor Company chairman and chief executive officer Alex Trotman said: 'Europe is tough for everyone, but we expect better results in 1997.' Looking at the global outlook, Trotman said: 'We're starting 1997 in a much stronger position. We have a tough business plan in place. We expect automotive earnings to improve in 1997, driven by a strong product line-up and company-wide efforts to lower costs.'