Advertisement
Find a Car
Go!

Ford Posts Record Loss But Still Isn't Running On Empty

Follow Richard

Like many automakers, Ford hit the skids last year. Also like many automakers, Ford's 2008 losses were legendary: the company closed out the year a whopping $14.6 billion smackers in the red. Worst. Year. Ever. (Really.)

Still Ford insists it's doing fine. (Really.) The company burned through $5.5 billion in the last quarter alone, but it's got $24 billion in reserve--much of which is in cash--and available credit totaling just over $10 billion. And, of course, that's not including the $9 billion line of credit Ford requested back in December. (I say "of course" because the feds haven't approvedĀ  it yet.)

Given all that--and given the fact that Ford never asked for bailout money, and therefore isn't tied to the many strings that money came with--Ford seems poised to pull through the current crisis. Analysts are moderately bullish on Ford's prospects, and the company has taken additional steps to ensure its viability--most notably, cutting ten percent of its North American salarymen and salarywomen, or about 2300 jobs.

As severe as that might sound, Mark Fields, president of the Americas, said, "There's still a bit more to do." By which he might be referring to the upcoming cut of 1200 jobs--20% of the workforce--at Ford Credit's American division. (Canadian workers can breathe easy. For now.) Or perhaps something even more drastic is afoot. Yeesh, we hope not.

[source AutoNews sub requ'd; AutoNews sub req'd; DetNews]

Posted in:
Advertisement
 
Follow Us

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
 

Have an opinion? Join the conversation!

Advertisement
Try My Showroom
Save cars, write notes, and comparison shop with hi-res photos.
Add your first car
Advertisement
Take Us With You!
   
Advertisement

 
© 2014 The Car Connection. All Rights Reserved. The Car Connection is published by High Gear Media. Stock photography by izmo, Inc. Send us feedback.