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11-08-2008, 12:51 AM
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.
Fordââ¬â¢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 isnââ¬â¢t looking bright.
ââ¬ÅWe continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,ââ¬Â CEO Alan Mulally said in a statement on Friday. ââ¬ÅWe have a strategy that is broad and specific enough to handle the dramatic changes in todayââ¬â¢s environment.ââ¬Â
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 hasnââ¬â¢t turned a profit since 2005 and doesnââ¬â¢t expect to return to profitability until at least 2010.
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.
Fordââ¬â¢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 isnââ¬â¢t looking bright.
ââ¬ÅWe continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,ââ¬Â CEO Alan Mulally said in a statement on Friday. ââ¬ÅWe have a strategy that is broad and specific enough to handle the dramatic changes in todayââ¬â¢s environment.ââ¬Â
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 hasnââ¬â¢t turned a profit since 2005 and doesnââ¬â¢t expect to return to profitability until at least 2010.
I was the only member on this board with a Yellow Focus Sedan, and a 2002+ Euro Facelift on a sedan.