Ford reports profit decline in Q3 due to tariffs, losses in China

Ford Motor Co. has reported a 37-percent decline in its third quarter net income, mainly due to rising steel tariffs and unsatisfying performance in China.

According to its third quarter 2018 financial results released on Wednesday, the American auto maker's net income slid to nearly 1 billion U.S. dollars, from about 1.6 billion in the same period last year.

Ford said the results were due to the higher costs and uncertainty impacting the entire sector, coupled with unexpected deterioration this year in its China and Europe business.

Bob Shanks, Ford's chief financial officer, said that tariffs on steel and aluminum have increased prices, fearing that President Donald Trump's ongoing trade war would cost Ford 1 billion dollars this year.

While Ford made 2 billion dollars before interest and taxes in North America in the third quarter, the auto maker continued to lose money in China, its second largest market.

On Tuesday, Ford announced it will create a new business unit for its operations in China, and will appoint a Chinese national as its head starting from Nov. 1.

Earlier this month, Ford launched an all-new SUV exclusive to the Chinese market as part of its "in-China, for-China" strategy.

The mid-size SUV, Ford Territory, is the first new vehicle launched by Ford in China in years, after the automaker realized that an aging vehicle lineup led to its declining share in China's auto market.