Ford Motor Co. (NYSE: F) is crowing this morning. The company claimed that it is the leader in European sales for the month of March, displacing Volkswagen AG for the top spot. Ford sold 192,500 cars in March, including 68,000 Ford Fiestas, the largest number of any model in the company’s history in Europe.

Volkswagen countered with its announcement that its first quarter 2010 worldwide sales grew nearly 25% year-over-year. First-quarter sales in Europe 837,100 vehicles, while Ford claims total European sales for the first quarter of 431,000 units. Ford’s market share in its 19 main European markets remains at 9.4%, putting the car maker in the number 2 position behind Volkswagen.

Ford also took a swipe at a possible $1.8 billion worth of loan guarantees to GM’s struggling Opel subsidiary. The company said that governmental support of “national champion” car makers was working against a restructuring of the European auto market, which currently has plant capacity to make one-third more cars than it sells.

The German government, once very supportive of Opel’s request, has cooled to the idea recently. The economy minister noted GM’s recent good operating performance, which the company said would enable it to repay loans from the US and Canadian governments. Germany believes that GM is sitting on about $30 billion in cash and that the company should spend some of this money on Opel.

Ford’s leading position in March is likely only temporary. The European “cash-for-clunkers” incentives have ended in the UK, Ford’s largest market, and are set to end in Spain, Italy, and France later this year.

And competition is sure to heat up in Europe, where projections call for an 8% decline in saless this year and car makers will be forced to lower prices in order to drive sales. That may help push more units out the door, but margins will be crushed.

For now though, Ford can hoist the ‘We’re #1″ foam finger over Europe.

Paul Ausick

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