Ford Reports Record Yearly Loss

by Jordan Yerman | January 29, 2009 at 11:11 am

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US automotive giant Ford reports a record yearly loss of $14.57 billion, yet refuses to ask for a government loan. Automakers around the world have gotten slammed by slackened demand.

Unlike its rivals General Motors and Chrysler, Ford has so far not relied on US government help.

Carmakers around the world have been hit by a drop in global demand.

Ford's December US sales fell 32%, while General Motors' sales dropped 31% in December, against the same month a year earlier.

"Based on current planning assumptions, (Ford) does not need a bridge loan from the US government, barring a significantly deeper economic downturn or a significant industry event, such as the bankruptcy of a major competitor that causes disruption to the company's supply base, dealers or creditors," Ford said in a statement.

However, Ford will be cutting 1,200 more jobs in its credit department, on top of the many thousands of layoffs already underway.