Ford Could Be Out of Cash Next Year if Spending Not Curtailed

November 10, 2008
If Ford doesn't engage in some serious cost cutting, it could be out of cash sometime in 2009, according to the U.K.'s AutoCar. Ford currently has cash reserves of $18.9 billion, which AutoCar project is enough to support the automaker for only seven months if it continues spending money at the current rate.

While Ford's posted loss of $129 million for the third quarter of '08 is far less than the $380 million it posted for third-quarter 2007, the company's operating costs soared to $7.7 billion during the third quarter of '08.

Ford plans cash conservation measures that include massive cuts in its labor force. They will do away with all bonuses and slash engineering and advertising costs in an attempt to reduce cash out by up to $5.5 billion. Ford has already canceled all U.K. advertising until the conclusion of '08.--Colin Mathews

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