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Ford posts $2.7b third quarter loss
Nov. 7 2008
Source: LLN

Things are going from bad to worse in Detroit, with low consumer confidence and tight credit markets leading to the full on collapse of new car sales. Ford posted a $2.7 billion operating loss in the third quarter, prompting the Dearborn-based automaker to announce further production and job cuts.

In addition to posting a $2.7 billion operating loss in the third quarter, Ford also burned through $7.7 billion of its cash reserves, according to Automotive News. As of the end of September, Ford had $18.9 billion cash on hand, down from $26.6 billion three month earlier.

Ford’s automotive operations lost $2.9 billion before taxes in the third quarter, compared to a $362 million loss a year earlier.

Ford calculates that it still has an overall liquidity of nearly $30 billion, but with sales expected to continue to tank in 2009, the future isn’t looking bright.

“We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,” CEO Alan Mulally said in a statement on Friday. “We have a strategy that is broad and specific enough to handle the dramatic changes in today’s environment.”

In an attempt to at least slow its bleeding, Ford will cut 10 percent of its North American workforce by the end of January. In addition to job cuts, Ford will also remove 40,000 vehicles from its fourth quarter production schedules, with most cuts coming at car and crossover plants.

Ford hasn’t turned a profit since 2005 and doesn’t expect to return to profitability until at least 2010.

At least the down turn is industry wide, not just 'Big 3'. Mazda, Honda & Toyota are all down too.

Atleast Ford is doing better than Gm and Dodge. They still have some money to last them till the end of 2009.

focusonthis_88,Nov 7 2008, 03:24 PM Wrote:Atleast Ford is doing better than Gm and Dodge.  They still have some money to last them till the end of 2009.
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yeah and hopefully by then the new models(focus, fiesta) are coming out and that should give some hope to ford.

So what say it goes under <_< would the value on our vehicals go up or go down?

Oh well, at least Ford didn't lose $4.2 Billion like some other NA auto company...

http://www.leftlanenews.com/gm-posts-25b-l...nouncement.html

Edit:

Here's an interview with Allan Mulally concerning today's announcement...

http://jalopnik.com/5079653/fords-mulally-...n?autoplay=true

It will turn around, I have faith in Ford.

Things are so bad for Ford at this point that I priced out an '09 MKZ loaded including NAV on Lincoln Canada's website and the MSRP was only $1,000 more than what I paid for the Fusion back in April for a new '08 :blink:

Almost makes me wish they had written the Fusion off :ph34r:

NefCanuck

Ford will have to get back in the game and build the kind of cars and trucks that make people say "OMG I HAVE TO HAVE ONE OF THOSE!" when they see them. The current crop of vehicles like the 08 Focus, and the Taurus, are dull and uninspiring, and the biggest selling feature seems to be the Sync stereo. There's more to a vehicle than a fancy stereo...
Full-Sized trucks...they aren't in demand anymore. They need to cut back production of the large trucks, and are going to have to expediate the new truck from Australia's arrival here (the replacement for the Ranger, and in the same size/weight category as the Dakota). They also need to stop holding back...build cars that are exciting. Don't build something that's going to create a short-term fix and then drop it (Like the SVT Focus, SVT Contour,). Build them, and don't stop building them...the Niche market for specialty markets will eventually grow to become more mainstream (Like the Civic Si and SIR/Type R) Stop building watered-down hand-me-down bastard child vehicles...just give us the same stuff that the UK, Germany and Aussie land get...

I think in the end, Ford WILL survive, but they won't be a major player in the market anymore like they used to be...

Gosh and think of the millions the designers, creative consultants, engineers are making.......i could come up with ideas and designs that would fair much better in the market.

I just don't get it......do they not research and know what the consumers want???

cornflakes,Nov 9 2008, 05:16 PM Wrote:Gosh and think of the millions the designers, creative consultants, engineers are making.......i could come up with ideas and designs that would fair much better in the market.

I just don't get it......do they not research and know what the consumers want???
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Thing is that they do and while I'm sure some focus groups (pun intended) do go off the rails, my guess is that far more of them present ideas that get killed by the beancounters who run the car companies these days (and we see how well that's working :ph34r:)

NefCanuck