f1anatic Posted January 25, 2007 Share Posted January 25, 2007 Ford hit by record $12.7bn loss Ford has reported a loss of $12.7bn (£6.5bn) for 2006 - the biggest annual loss in the embattled US carmaker's 103-year history. A slump in sales, combined with major restructuring costs, saw the firm lose $5.8bn in the final three months of the year alone. The iconic US carmaker has been struggling in the face of competition from Japanese rivals such as Toyota. Ford has plans to close 16 factories in North America and cut 45,000 jobs. The company, which is currently the second-biggest carmaker in the US, may be overtaken by Toyota in its domestic market later this year, reports have suggested. 'Aggressive actions' We fully recognize our business reality and are dealing with it - we have a plan and are on track to deliver. Alan Mulally, Ford chief executive Ford's full-year loss surpassed the company's previous record annual net loss of $7.39bn in 1992. However, the company said it remained confident that it would return to profit by 2009. "We fully recognize our business reality and are dealing with it," said Ford chief executive Alan Mulally. "We have a plan and are on track to deliver. We began aggressive actions in 2006 to restructure our automotive business." Ford had previously put much weight on sales of pick-up trucks and SUVs, or sport utility vehicles, to generate profits. But a peak in the price of oil last year, which pushed US petrol prices up to $3 a gallon, saw customers abandon gas-guzzling vehicles in favour of smaller, more fuel-efficient cars. Mr Mulally said Ford planned to "operate profitably at lower volumes and with a product mix that better reflects consumer demand for smaller, more fuel efficient vehicles". Ford, the world's third-biggest motor company, made a net profit of $1.44bn in 2005. Story from BBC NEWS: http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6298463.stm Published: 2007/01/25 14:35:44 GMT © BBC MMVII Link to comment Share on other sites More sharing options...
Scotty Posted January 25, 2007 Share Posted January 25, 2007 They also pulled out today as one of the primary sponsors of Champ Cars. Link to comment Share on other sites More sharing options...
VTsullyman Posted January 25, 2007 Share Posted January 25, 2007 I remember how everyone was saying that GM was gonna go down and now they are back making money and fords going down. Makes me happy, hopefully we will see the last of the Mustang! 2007 DGM LGT 2003 Suzuki SV650S Link to comment Share on other sites More sharing options...
iyalla Posted January 25, 2007 Share Posted January 25, 2007 Not a big surprise. The only profitable things they make are the Mustang, Explorer, F Series trucks and Mazda. Oh GM is not out of the woods yet, by a long shot. You GM fans amaze me lol You guys are so optimistic its great Link to comment Share on other sites More sharing options...
VTsullyman Posted January 25, 2007 Share Posted January 25, 2007 Hey as i have said in other posts IMO the camaro is their last chance to do it right. They got a lot of buzz and if they can make a good car they may have turned the corner. I think it will be start of a lot of good things or the big turn downhill again. Time will tell. 2007 DGM LGT 2003 Suzuki SV650S Link to comment Share on other sites More sharing options...
whitetiger Posted January 25, 2007 Share Posted January 25, 2007 ^agreed. chevy just cant compee with toyota in honda inf the family sedan market. the camaro has to be a seller to make up for the lost ground. Link to comment Share on other sites More sharing options...
iyalla Posted January 25, 2007 Share Posted January 25, 2007 Hey as i have said in other posts IMO the camaro is their last chance to do it right. They got a lot of buzz and if they can make a good car they may have turned the corner. I think it will be start of a lot of good things or the big turn downhill again. Time will tell.I know I was just teasing you I really hope they turn it around, I agree they are the only one in a position to do it out of all three. Come on GM, don't blow this Camaro like Ford blew the Thunderbird! Link to comment Share on other sites More sharing options...
Sponge Posted January 25, 2007 Share Posted January 25, 2007 less than 10 years ago Ford had the #1 selling sedan...by a long shot. They have publicly admitted they ignored it and just basically forgot about it. I just don't get it sometimes? My vB Gallery Link to comment Share on other sites More sharing options...
neelnug Posted January 26, 2007 Share Posted January 26, 2007 The new GM vehicles are pretty good. Im still waiting for Ford to come out with something decent. The Fusion and Edge are weak. Link to comment Share on other sites More sharing options...
TPLGT Posted January 26, 2007 Share Posted January 26, 2007 Here is my take: F is a business...the Ford's own the Detroit Lions...the Lions are a business too. The Fords, for some completely, recockulous reason still have Matt Millen employed as their GM. The main problem: They're awful business people...face it. Both industries should be run like businesses but they refuse to hire decent, competent people. I could run the Lions better than Matt Millen...that is Fact, not opinion. Now Ford motor co. may be a differnet story but the team...no problem. God bless Lions fans...some of the best for holding on..good people. ANother issue w/ all US Car makers....there is nearly $4,000 in every car BEFORE a single piece of metal is put togther...margins are tight. Rehab is for quitters. Link to comment Share on other sites More sharing options...
Sponge Posted January 26, 2007 Share Posted January 26, 2007 Well they are losing almost 4,800 on every car so if they are selling it for 20K the cost is 24.8K Between healthcare costs and more importantly their stupid mistakes in the past (and ongoing) with the UAW they have no hope of getting their head out of the sand. My vB Gallery Link to comment Share on other sites More sharing options...
Mines Posted January 26, 2007 Share Posted January 26, 2007 BOLD MOVES... haha Link to comment Share on other sites More sharing options...
iyalla Posted January 26, 2007 Share Posted January 26, 2007 When they allowed cars like the Taurus and Crown Victoria, cars that paid the bills for them, turn into ancient artifacts I mean what more did they expect. Link to comment Share on other sites More sharing options...
Jedi Pimp Posted January 26, 2007 Share Posted January 26, 2007 The Edge crossover should be a good seller. Its a pretty sharp vehicle, and the Mustang is doing well. But other than that, they have a really crappy lineup. The new Focus redesign is so nasty you wouldn't believe it. They need the european models pronto. Saturn made the right move by bringing the Opels over. The new Sky and VUE are kickass. Ford needs the Mondeo and the Euro Focus here yesterday. Link to comment Share on other sites More sharing options...
SLegacy99 Posted January 27, 2007 Share Posted January 27, 2007 BRING BACK THE TEMPO.................NOT But seriously, the Edge and the Fusion will bring em back. Link to comment Share on other sites More sharing options...
NewScooby Posted January 27, 2007 Share Posted January 27, 2007 BRING BACK THE TEMPO.................NOT But seriously, the Edge and the Fusion will bring em back. I highly doubt that I am part of the early 30's/dual income family w/two kids and a dog demographic that I would hope Ford is pursuing. And IMO, they don't have a clue. If they do totally fall apart, I'll be waiting to buy a heavily discounted Shelby GT500 to do my part to help them out Link to comment Share on other sites More sharing options...
Penguin Posted January 27, 2007 Share Posted January 27, 2007 Ford's biggest problem is that they make boring ass cars that no one wants to buy, drive, or even rent if given a choice. Both GM and Ford need look at what Chrysler/Dodge did with their cars. Chrysler realized that they can't compete with Toyota, Honda, and the Koreans at producing bland appliance like family cars. Those companies have that market cornered. So instead Chrysler brings out the 300, the Magnum, and the Charger. These cars are much different than the Camry and Accord, much more powerful with the right motors, much more distinctive, and don't cost much more money. These cars have a soul, and lots of people recognize that and buy them accordingly. GM it seems has gotten the message loud and clear (and I can't wait to see an LS2 powered four dour for about 35K), and Ford needs to do the same thing. Link to comment Share on other sites More sharing options...
VTsullyman Posted January 27, 2007 Share Posted January 27, 2007 Both GM and Ford need look at what Chrysler/Dodge did with their cars. That may be the first and only time you ever hear anyone say something like thta. :lol: 2007 DGM LGT 2003 Suzuki SV650S Link to comment Share on other sites More sharing options...
bskey Posted January 27, 2007 Share Posted January 27, 2007 First off, Jedi Pimp, I love your avitar. On to more serious topics. Recently announced, Ford is planning to give bonuses to it's salaried employees. Hmmmm..... Then the UAW would really flip out. Laying off 45,000 workers, but they can find the dough in their money pit to lay out bonuses? Detroit really needs to get their head on straight. life in spin cycle..... Link to comment Share on other sites More sharing options...
konrad Posted January 27, 2007 Share Posted January 27, 2007 I don't get it why some of you guys are happy. I am concerned Ford is thousands of jobs for Americans. I feel sorry for all workers getting laid off b/c of that. Link to comment Share on other sites More sharing options...
iyalla Posted January 28, 2007 Share Posted January 28, 2007 I'm not happy. I'm mad and I can't understand why people whose lives depend on this company and who love it aren't mad too. I'm mad at how dumb they've made American business men and women look. They had a whole decade to build cars while the SUV boom was in full swing and they squandered the time by developing...drumroll...more SUV's! While everyone was predicting that gas prices would go up and the craze for SUV's would die these moronic companies were predicting the total opposite:icon_conf. Thats like the weather center saying that there is a 90% chance of rain and you bet their computers that it won't. Then to top it all off the CEO's that screwed everything up are getting bonuses. If I worked or depended on Ford USA I would be so pissed right now. Link to comment Share on other sites More sharing options...
AWD_Rules3830 Posted February 2, 2007 Share Posted February 2, 2007 A lot of this can be blamed on the UAW and poor company management. How things have changed though; it was originally predicted that Ford would survive while GM when under. Ford does how have that guy who turned Boeing around ... can he do the same for ford? The company is basically having to mortgage all their assets right now to stay afloat ... Bankruptcy could actually be a good thing at this point for Ford and GM. Either way, their cars suck anyway. I love my car ... basically. Link to comment Share on other sites More sharing options...
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