Thursday, Jul 24, 2008
Automaker said it lost $8.7 billion in second quarter
CNN: Ford reports massive loss
As production winds down, Ford has been slashing production of SUVs and large trucks to meet the reduced demand and offering buyouts to its 54,000-strong workforce. Ford set a goal of cutting 15% of its work force by Aug. 1. But so far this year, only 4,200 workers have accepted the buyout offers.
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how many ford workers will go in EU and UK? what about parts makers etc
Posted by mark @ 12:46 PM (419 views) Add Comment
8 Comments
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1. alan said...
In Europe, for the 2nd Qtr, profits were double what they were at the same time last year. (See the published accounts). A new Fiesta was launched recently, plus an all-new Kuga (AWD).
CNN tend to report only what's happening in the US of A. Out there it's a weak market, for sure....
2. drewster said...
Incredibly, the US auto industry is suffering a repeat of the 1970s oil crisis. Back then they made far too many big thirsty cars; when oil prices spiked, the Japanese invaded with small cheap fuel-sippers. Today it's the same thing - most of the Big Three (Ford, GM, Chrysler) depend on thirsty SUVs and pick-ups, but with petrol costing the Americans an unprecedented $4 a gallon (up from an average of $1.50 just five years ago), sales of big cars are plummeting while the Japanese Toyota Prius has a four-month waiting list.
In the UK and Europe, Ford is in a much stronger position. The Focus and Mondeo are as popular as ever while the newly-launched Fiesta has received very positive reviews. All three models are available in ECOnetic variant which gives them the edge over their not-so-eco competitors.
3. geed said...
Worked for years as an engineer for Ford of Europe.
They used to move money around to hide North America's woefull performance over the last decade. It is now so bad they appear to have given up. Ford of Europe is generally quite healthy, via a combination of good product (driven by non-complacent European customers who demand much higher standards than the yanks), a technologically driven marketplace which has long been focused on the reducing emissions and CO2 down - way before Gore started bleating on about Global warming - via stringent EU legislation and strategic, cost effective partnerships with PSA, Volvo, JLR. GM is similar with Opel and Saab.
Americans will drive a Ford because "Daddy always drove a Ford" mentality. Cocooned in their own self importance they have found themselves at the whim of global forces beyond their control. The lesson they are learning will be a harsh one, but will it sink in?
4. Fjcruiser said...
Ford is doing badly in the US because the cars are c....Americans prefer buying japanese cars as they are much better value than Ford with its obsolete models and poor reliability. In europe, ford is doing a lot better because the cars are competitively priced and more reliable than in the States.
5. beartil2010 said...
It will sink in when they are not the largets economy in the world any more - when China or India take over the top spot.
6. Whostolemyendowment said...
Trouble is it affects the whole supply chained through 1st 2nd and 3rd tier suppliers and manufacturers....all are on a knife edge with the modern fancy for just in time supply....this reaches all the way back to the far east manufacturers....the pain will hit every last nerve ending.
Mr G & Mr B are both right.....the US of A has been used to being no 1 since they 'stepped in' and won the WWII and the Cold War....are used to big cars, big houses, big appliances, well big everything - at the cheapest cost to them......the unfolding new reality will be very painful, and I expect their reaction will be the same as always...isolationist, and the rest of th world can go to hell. Only trouble this time is the world owns your ass dude!
7. drewster said...
Geed - thanks for the inside info, always appreciated
8. waiting for the crash said...
Credit write-downs on assets caused most of the loss i.e defaulting car buyers and bad loans Ford has made. More to come....
European models in North America. That would have been unthinkable in 2006. But needs must to survive.But about time Americans stopped having an average fuel economy of 17-20mpg (not sure of the exact figure but thats the range)
Write downs from all the automakers soon as they are all exposed to the US market and provide finance for car sales so losses at BMW, Toyota etc.
US is the overstaffed market not EU which is making a good profit. American company now has most of its global vehicle line-up designed in Europe jointly between the Germans and Brits.
Hello Clipsheet
Ex-fordie