Ford Europe's Vehicle Sales Rise 7% January-August

By William Boston

BERLIN--Ford Motor Co.'s European subsidiary reported a 7% rise in vehicle sales in the first eight months of the year, boosted by the continued recovery in Europe's car markets and record sales of its Kuga sport utility vehicle.

Although the recovery in Europe appears to be slowing after months of strong growth, Ford of Europe remains confident that European car sales will grow this year for the first time after a six-year decline.

"We don't believe there is a downward risk," Roelent de Waard, Ford Europe's chief of sales and marketing, told The Wall Street Journal.

Ford said European sales rose to 762,900 vehicles from January to August, up from 712,400 vehicles a year earlier. In August alone, European sales rose 14% to 61,700 vehicles.

Ford reports sales in the top 20 European countries.

The U.S. car maker has been able to increase the share of vehicles it sells to retail customers and businesses that buy fleets of cars, typically more profitable sales, and decrease sales to lower margin car rental firms. Retail sales rose to 8.5% of total sales in August, the highest level since 2009. Growing retail sales has allowed Ford to reduce incentives in Europe, Mr. Waard said.

"Pricing pressure has not changed," he said.

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