FORD'S European operations contributed $273 million to global profits of £6.9 billion (£4.3 billion) after tax. The European earnings reverse last year's loss of $291 million in a record year for Ford which saw worldwide profits jump 56%.

Global car and truck sales reached 6.94 million units - up nearly 300,000 on 1996.

British-born chairman Alex Trotman said the performance proved that his Ford 2000 rationalisation and restructuring plan was beginning to work. 'It was a very good year,' said Trotman. 'We exceeded all our financial goals for 1997. Revenues grew, automotive returns were up, quality improved sharply, customer satisfaction was up and total costs down.'