GENEVA (AP) - Russia's sinking economy is putting up a major hurdle for Ford Motor Co. and General Motors as the U.S. automakers fight to return to profitability in Europe after years of losses.
Karl-Thomas Neumann, CEO of GM's Adam Opel GmbH subsidiary, said at the Geneva auto show that the Russian market "is basically collapsing." He said sales there could fall this year to as low as 1.5 million. Last year, they were 2.5 million.
Neumann said Russia's downturn was "working in the wrong way" as the company tries to meet a goal of breaking even this year. He added that the company wasn't giving up on its goal of returning to profit in Europe in 2016.
Ford of Europe head Jim Farley told reporters that Ford "made a lot of progress" in cutting losses in Europe through reducing factory capacity and strengthening the company's brand with new models.
"We see 2015 as a year of financial progress," he said, without putting a date on returning to profit. Ford lost $1.1 billion in Europe on an operating basis for all of last year, though it did make money there in the second quarter.
Russia's economy appears headed for recession after a plunge in the rubles value. Sanctions imposed by the U.S. and European Union over Russia's conflict with Ukraine have weighed on the economy.