You see how painful it is to be a mainstream automaker in Europe at the moment when you dig into Ford and PSA/Peugeot-Citroen's latest financial results.
From July to September, Ford of Europe increased new-car sales by 5 percent to 357,000 units and revenues by a 25.8 percent to $7.8 billion.
Boosting unit sales and revenues boosts profits, right?
Actually, no. Ford's pretax losses in Europe increased to $306 million in the third quarter from $197 million in 2010.
Ford says its widening European losses are due to higher commodity costs, including hedging adjustments, as well as unfavorable exchange rates, partially offset by improved structural costs.
What Ford doesn't say is that mainstream automakers in Europe are luring customers and fleet managers with hefty discounts.