As expected, Ford Motor Co. (NYSE: F) posted dreadful results. But the numbers were even more awful than Wall Street feared, sending shares of the company plunging in premarket action.The number three automaker -- at least for now --- posted a net loss of
Excluding one-time expenses, the loss was $1.38 billion, or 62 cents. On that basis, analysts had expected a loss of 27 cents on revenue of $34.6 billion, according to Thomson Reuters.
"Our European and South American operations are robust and profitable," said Chief Executive Alan Mullaly in the earnings release. " We have momentum in
Ford, which posted better-than-expected results earlier this year, is accelerating its plans to shift away from producing the hugely profitable and gas-guzzling Ford F-150 pick-up truck line. Three truck and SUV plants will be converted to make smaller, more fuel-efficient vehicles.
"In addition to bringing six small vehicles to North America from the company's acclaimed European lineup, Ford is accelerating the introduction of fuel-efficient EcoBoost and all-new four-cylinder engines, boosting hybrid production and converting three existing truck and SUV plants for small car production, beginning this December," the company said.
For now, investors, including billionaire Kirk Kerkorian, are willing to give Mullaly time to bring back Ford from the abyss. Their patience, though, is not inexhaustible.
Reader Comments (Page 1 of 1)
7-24-2008 @ 12:20PM
jpdr1100 said...
What makes Ford "uniquely positioned" to bring in the fuel efficient cars that are sold elsewhere? Every major automaker in the world has this option.
What makes Ford and GM unique is that despite having had this option for decades and are just now getting around to doing it.
7-24-2008 @ 2:21PM
Jobu37 said...
I believe the blogger was referring to the desirable nature of the European Fords. As opposed to the appliance like demeanor of Toyotas and Hondas. What the blogger does not realize is that the US market has evolved into a market that desires bland autos with little or no character. Ford's chances of making this work are moderately better than say a year ago. There is now actually sustainable demand in the B and C segments whereas only a year ago C segment sales were nohwere near profitable due to the "UAW collar". With better COAs in effect at the various plants. Along with the new lower wages being in place in just over a year Ford can make a profit on these products. It is still a gamble since the US consumers appear to prefer blandness in the B and C segment. At least the majority of US consumers. This is proven by the demand for the Civic, Corolla, Camry, and Accord. These Euro-Ford models with their fancy suspensions might be too much for consumers who are used to the boat like feel of the afore mentioned import models. Even the current Focus puts the import competition to shame but due to capacity constraints along with blind loyalty both the Civic and Corolla still do better. In short, unless the perception gap is closed at a faster pace than it is currently narrowing any move by Ford will only have moderate success. Ford has already proven that building vehicles that equal or surpass the imports is not enough. They need to find a way to get on the radar of those consumers trapped in the rut of looking at imports only. Mr. Farley needs to have a break-through soon.
7-24-2008 @ 2:45PM
donut999 said...
one thing to keep in mind as we all read the ugly headlines today, yesterday, last week and month--
where are the car companies, banks, and the rest of the biz world going to be down the road. ford, or whoever might improve their small car market share. a couple of people i know with extensive knowledge of the auto market have said for years that the production of small, stripped down cars is a minor profit center for auto makers. keeps a lot of people working, improves car mfg's ability to make supplier deals, etc..
but the money is made on the luxury, loaded up, cars and suv's. if that market is gone, or at least severely diminished, what is the future for auto mfg?
7-25-2008 @ 12:10PM
jpdr1100 said...
Several problems wit jobu's reply.
First, the words quoted (uniquely positioned) are NOT the blogger's. Those are Mulally's words. So if they are used due to lack of knowledge of the US market, then Ford is in even worse shape than the numbers suggest.
And the "Japanese cars are bland" mantra is getting a bit old, don't you think. It always appeared to be a cop out to me. I realize there is probably not a Camry enthusiasts club meeting Tuesday night at the Dairy Queen, but please tell us what is so exciting about an Impala? Or a Fusion? Don't even get me started on the new Taurus.
IMO, the new Civic is the most radical car in its class. And it's skyrocketing sales suggest Americans are buying something other than bland.
And if you want to complain about boat-like ride, you need look no further than Detroit, because they invented it, and still produce more of it than anyone in the world. If Tokyo has caught the illness, it has done so only to sell here.