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Author Topic: Ford has its largest loss in 103 years  (Read 2410 times)

Offline Allen

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Ford has its largest loss in 103 years
« on: January 25, 2007, 08:29:05 am »
Ford has its largest loss in 103 years
Associated Press

DEARBORN, Mich. — Ford Motor Co. lost $5.8-billion (U.S.) in the fourth quarter amid slumping sales and huge restructuring costs, pushing the fabled automaker's deficit for the year to $12.7-billion, the largest in its 103-year history.

The annual loss reported Thursday surpassed its previous record for a year of $7.39-billion set in 1992. It earned $1.44-billion in 2005.

The Dearborn-based company expects continued losses for this year. It expects to burn up $10-billion in cash on automotive operations through 2009 and spend another $7-billion to invest in new products.

Excluding special items, Ford lost $1.50 per share in all of 2006, worse than Wall Street predicted. Fourteen analysts polled by Thomson Financial expected a loss of $1.35 per share for the year, excluding special items.

Ford said that special items associated with restructuring costs totalled $9.9-billion for the year as the company continues efforts to shrink itself to match reduced demand for its cars and trucks.
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Offline daft

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Re: Ford has its largest loss in 103 years
« Reply #1 on: January 25, 2007, 09:57:49 am »
Countdown to selling off PAG and Mazda?
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Offline safristi

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Re: Ford has its largest loss in 103 years
« Reply #2 on: January 25, 2007, 10:32:53 am »
The larger yer "LOSSES!!!" the more EAGER yer BANKERS & GOVERNMENT are to cover yer arse.......we should all spend like drunken sailors and say BAIL ME OUT Cap'n..I made a bad decision buyin that Exige and the Sea_Doo with a cottage attached and the Bentley on CREDIT...MY BAD..now can I go to the MALL?????? :'(
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Offline initial_D

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Re: Ford has its largest loss in 103 years
« Reply #3 on: January 25, 2007, 10:36:24 am »
Hope they can turn things around in a hurry.

But have anyone, anyone, ... bought a Ford ... Lately?
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Offline village

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Re: Ford has its largest loss in 103 years
« Reply #4 on: January 25, 2007, 10:46:30 am »
They should be dumping that boat anchor company called Jaguar.  As much as I like Jag's styling myself, Ford has enough problems without coping with half a billion dollars in loses from them.  Mazda I think would be a mistake to sell.  I would expect more Fusion type cars from them, reskin a Mazda and sell it as Ford.  On the road the Fusion looks like a hit where I live.  I'd seriously consider one, but part of the reason is I know it's a Mazda underneath.  I think they are going to need them to turn the company around.
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Offline Snowman

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Re: Ford has its largest loss in 103 years
« Reply #5 on: January 25, 2007, 12:26:40 pm »
Bad news, I can see Ford dumping Jag and Volvo but Mazda makes money and with current platform sharing would only increase unit costs.
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Offline sirAQUAMAN64

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Re: Ford has its largest loss in 103 years
« Reply #6 on: January 25, 2007, 12:51:19 pm »
Volvo and Mazda are usually very positive contributors, Aston is valuable but a distraction to the business with small scale volume - a great candidate for sale because it would attract buyer attention. Jag is unfortunate - Ford really turned them around quality-wise, and has helped them a lot, but they've lacked direction and have perception issues in the marketplace (often being overlooked, they haven't broken through or make buyer's shopping lists). I believe they still have a special prestige place for older men, Brits, eclectics, and women... they just need a bolder presence and perhaps a broader range of newer and more competitive products (really, they ride the XJ). In the short-term, not easy or inexpensive to do.
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Offline PJungnitsch

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Re: Ford has its largest loss in 103 years
« Reply #7 on: January 25, 2007, 01:15:37 pm »
It's a scary situation. Ford has literally 'bet the farm'. From what I understand all their assets: factories, offices, rights, and so on have been put against raising enough cash to turn things around in the next few years. Sorta like the last moves in a Monopoly game.

And with their ever-decreasing size and the increasing commitment of Honda, Toyota, etc to build cars in North America it may get to the point where the governments say, 'So they go bankrupt, so what?'

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Offline Mitlov

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Re: Ford has its largest loss in 103 years
« Reply #8 on: January 25, 2007, 05:35:42 pm »
Quote from: daft on January 25, 2007, 09:57:49 am
Countdown to selling off PAG and Mazda?

Those are the two most profitable companies in the Ford auto group, aren't they?  I doubt they'd sell their best assets.
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Offline ovr50

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Re: Ford has its largest loss in 103 years
« Reply #9 on: January 25, 2007, 06:12:04 pm »
Quote from: initial_D on January 25, 2007, 10:36:24 am
Hope they can turn things around in a hurry.

But have anyone, anyone, ... bought a Ford ... Lately?

Hell, Ya..... ;D ;D
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Offline initial_D

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Re: Ford has its largest loss in 103 years
« Reply #10 on: January 25, 2007, 06:22:39 pm »
You are special - California Special to be exact! Even Arnold Approves.  :)
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Offline Silent Lucidity

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Re: Ford has its largest loss in 103 years
« Reply #11 on: January 25, 2007, 06:24:37 pm »
Quote from: Mitlov on January 25, 2007, 05:35:42 pm
Quote from: daft on January 25, 2007, 09:57:49 am
Countdown to selling off PAG and Mazda?

Those are the two most profitable companies in the Ford auto group, aren't they?  I doubt they'd sell their best assets.

They would command a high buying price.  If Ford gets desperate enough, they could be gone.
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Offline dave 2

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Re: Ford has its largest loss in 103 years
« Reply #12 on: January 25, 2007, 06:34:07 pm »
Might explain their pullout as sponsor or the Champ Car Series.
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Offline G0dspd

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Re: Ford has its largest loss in 103 years
« Reply #13 on: January 25, 2007, 08:23:03 pm »
The Ford Empire

Keepers:
-Ford: Ford NA should take a few pointers from across the pond ... in Europe they're a great division.
-Mazda (33%): They make a good team for the most part.
-Volvo cars: Could be the high-end badge of the brand ... and they're sharing a lot of platforms.

Losers:
-Aston Martin: It's making money but should be sold to someone who could maintain it.
-Jaguar: Unplug the life support!
-Land Rover: Integrate it in the Ford Truck division as a fancy off-road line-up (the brits won't see the difference)
-Lincoln: Switch the Navigator to Ford and kill it.
-Mercury: They're trying to make it cool with the new ads but nobody cares
« Last Edit: January 25, 2007, 11:32:48 pm by G0dspd »
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Offline Mitlov

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Re: Ford has its largest loss in 103 years
« Reply #14 on: January 25, 2007, 08:41:56 pm »
Quote from: G0dspd on January 25, 2007, 08:23:03 pm
The Ford Empire

Keepers:
-Ford: I assume this would be the last one to go  ;D
-Mazda (33%): They make a good team for the most part.
-Volvo cars: Could be the high-end badge of the brand ... and they're sharing a lot of platforms.

Losers:
-Aston Martin: It's making money but should be sold to someone who could maintain it.
-Jaguar: Unplug the life support!
-Land Rover: Integrate it in the Ford Truck division as a fancy off-road line-up (the brits won't see the difference)
-Lincoln: Switch the Navigator to Ford and kill it.
-Mercury: They're trying to make it cool with the new ads but nobody cares

:iagree: with the possible exception of Lincoln.  I'd also suggest selling brands like Land Rover and Jaguar instead of deep-sixing them.  The names and histories alone are worth something.

But Ford/Mazda/Volvo make a great trinity.  And who knows, if Ford gets rid of Jaguar, they might bring back a RWD Volvo or two :)  I would LOVE a turbocharged RWD Volvo sedan.
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Offline G0dspd

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Re: Ford has its largest loss in 103 years
« Reply #15 on: January 25, 2007, 11:38:32 pm »
Quote from: Mitlov on January 25, 2007, 08:41:56 pm
:iagree: with the possible exception of Lincoln.  I'd also suggest selling brands like Land Rover and Jaguar instead of deep-sixing them.  The names and histories alone are worth something.

If they could get a decent offer for Jaguar (a black hole) and Land Rover (once Bimmer's) ... it would be better than killing the brans.
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Offline AVToller

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Re: Ford has its largest loss in 103 years
« Reply #16 on: January 25, 2007, 11:54:14 pm »
Quote from: G0dspd on January 25, 2007, 11:38:32 pm
If they could get a decent offer for Jaguar (a black hole) and Land Rover (once Bimmer's) ... it would be better than killing the brans.

Would that be wheat bran and oat bran??  ??? ??? :rofl2:
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