NP Rank:
Ford posts largest quarterly loss ever
Ford Motor Company today announced that they are going to be transforming their vehicle lineup due to the largest reported loss for the company in its 105 year history.
Their stock also fell about 16% - which is a LOT for anyone who is unsure what that number means. Especially in the case of a global company with a long history of success.
"Because of deteriorating economic conditions, demand has declined dramatically, especially in North America," said Ford CEO Alan Mulally, who also blamed rising gas prices for the decline.
Mulally said the company is working toward reducing its salaried workforce by 15%. The company aims to save $5 billion annually, and has managed to reduce costs by $1 billion so far.
He also said the company is now shifting its focus "to bring to the North American market smaller, more fuel-efficient vehicles that people increasingly want."
Ford is going to start selling smaller cars in North Amercia and not such big trucks.
The three large truck and sport utility plants in Michigan, Kentucky and Mexico will be switched over to the manufacture of smaller cars starting this December. But production of smaller cars in general will be ramped up regardless.
Ford is hustling to keep up with demand of the smaller cars as gas has just become too expensive to drive the larger trucks. Some lines will continue for now though.
Ford said it lost $8.7 billion, or $3.88 per share, in the second quarter, including pre-tax special charges primarily due to the write-down of assets. A year earlier, the automaker announced a profit of $750 million, or 31 cents per share.
Without charges, Ford reported a loss of $1.4 billion, or 62 cents per share, in the latest quarter.
I think this is a good idea for Ford. I know they are losing money right now, but a switch over to smaller cars and more economic vehicles will benefit everyone. I hate big trucks anyway, but that's just my opinion...
News Tools
July 24, 2008 at 02:29 pm by amyjudd, 446 views, 15 comments
Crowd Power
-
ymvf
Oviedo, Florida, United States -
Impossible IT
Vallejo, California, United States -
JosephW
The Colony, Texas, United States -
Yellowbird91
Netherlands -
brizbane
Agoura Hills, California, United States -
Josh Novak
Fort Collins, Colorado, United States -
mechboy
Chile -
Narisa
Seattle, Washington, United States -
SueBanks
Ashburn, Virginia, United States -
blitzman777
Seattle, Washington, United States -
intheshado
Greenbrier, Tennessee, United States -
geekyartistlibrarian
McKinney, Texas, United States -
kahemartins
São Paulo, Brazil -
antmor
South Africa -
5lbisland
Gloucester, Massachusetts, United States -
flaviomontenegro
Chile -
lahijadeunminero
Otisville, New York, United States -
Sinky
Germany (Deutschland) -
Seffywuff
Oklahoma City, Oklahoma, United States -
redhead
Miami, Connecticut, United States -
amichele66
Blue Springs, Missouri, United States -
Puckfiend
Tustin, California, United States -
pedro vit
Houston, Texas, United States -
Cody Hollaway
Liberty, North Carolina, United States -
kmhinkle
United States -
sevensixnyc
Las Vegas, Nevada, United States -
Syowoe
Vancouver, Canada -
evster_S5
Canada -
audiofreak9
Cape May Court House, New Jersey, United States -
petursig
Iceland -
Ralph Hockens
United States -
chesterhogston
Greensboro, North Carolina, United States -
bnazario
Ann Arbor, Michigan, United States -
SummerTX
Austin, Texas, United States -
Chris Campbell
Wolfville, Nova Scotia, Canada -
leslieee
Brookfield, Wisconsin, United States -
yelnats38
Riverside County, California, United States -
bceichman02
San Antonio, Texas, United States -
LizzieBelle
Westfield, Massachusetts, United States -
JWSherman
Houston, Texas, United States -
Civisi
Brazil, Indiana, United States -
DukeOntario
Chanhassen, Minnesota, United States -
ssanyal
San Jose, California, United States -
Shashinshi san
London, United Kingdom -
rmeneses
Venezuela -
grafficartistg4
Kalispell, Montana, United States -
designerBrent
Spokane, Washington, United States -
budmanandbooger
Sacramento, California, United States -
normann
Reading, -
shadowplay
Santa Clarita, California, United States





Add a comment
Comments (15)
at 15:46 on July 24th, 2008
amyjudd, I like this story. It's sad stuff but they can turn it around. Cars that use less fuel are what the public want.
at 18:53 on July 24th, 2008
amyjudd, oh henry Ford, the man creating steel mills, inventing the first igniton system with a braker, inventing the automatic gear box, producing the 8 cylinder, inviting philosophers, Trine others, paying the highest salaries for american workers, creating wealth. I think you are right, he would opt for a small Tin Lizzy Eco mass car. Volkswagen same failure, no ECO car low cost, the founders driving innovation are missing.
- reply
rmenesesat 19:25 on July 24th, 2008
This image is from an old firemen truck that even being out of duty, still works!! I have another images from this truck
rmeneses has contributed a photo to this story.
- reply
pedro vitat 20:56 on July 24th, 2008
Just loved the symmetry and the colour of the car I was watching and decided to take this photo.
Photo in Flickr
http://farm4.static.flickr.com/3293/2534981215_d4a06a40fb_b.jpg
pedro vit has contributed a photo to this story.
- reply
chesterhogstonat 21:18 on July 24th, 2008
Picture taken at Columbus Ohio Good Guys National Car Show.
chesterhogston has contributed a photo to this story.
at 21:22 on July 24th, 2008
amyjudd, I like this story. It's good stuff.
It's really strange that they are in this position. When I first went to Europe years ago, everyone was driving the Ford Escort. They also came out with some really great European models a few years ago. It's too bad they didn't move forward with some of their small car designs.
at 22:20 on July 24th, 2008
amyjudd, I like this story. It's good stuff.
at 04:11 on July 25th, 2008
amyjudd, I like this story. It's good stuff.
Ouch, that will hurt!
- reply
lahijadeunmineroat 08:33 on July 25th, 2008
lahijadeunminero has contributed a photo to this story.
- reply
kahemartinsat 10:40 on July 25th, 2008
This picture was taken in Ribeirão Preto, São Paulo - Brazil, from a Ford Belina
kahemartins has contributed a photo to this story.
at 12:24 on July 25th, 2008
amyjudd, I like this story. It's good stuff.
at 17:09 on July 25th, 2008
This photo was taken at a local Kit Car Exhibition in Carrickfergus, County Antrim in Northern Ireland. It was a sticker stuck to one of the cars.
On the one hand, it is sad that one of the world's oldest and longest running car companies are having problems but it isn't solely a Ford problem, it effects everyone. They haven't got everything right in the past, and who knows, maybe a serious revamp might boost peoples interest in the brand again. I hope so. There have been many marques come and go during the history of the car industry, but if Ford were to be one of them, I think that would be a very sad day. They were, after all, the first company to make motoring accessable to everyone and I for one, hope that they can continue to do so.
thepeoplespoetsw has contributed a photo to this story.
at 17:12 on July 25th, 2008
Great stuff!
at 23:34 on July 25th, 2008
John Boyd of BlindReason gave his perspective on Paul Kedrosky's blog:
Source: paul.kedrosky.com
- reply
brizbaneat 02:10 on July 29th, 2008
I took this on a photoshoot for a movie. The car was parked in the Pink Hotel out in Sunland, CA, surrounded by neon.
brizbane has contributed a photo to this story.