Ford reports huge $8.7 billion loss for 2nd quarter
It's been a tough time for Detroit, and of the Detroit automakers, and Ford is feeling it the worst. They have just reported a staggering $8.7 billion loss for for the second quarter, mainly due to the tanking truck and SUV sales.
That's the bad news. The good news is that Ford has got big plans in store, that will completely overhaul their North American lineup over the next few years. For details, check out
AutoObserver's editorial:
Ford Reports $8.7 Billion Loss in Second Quarter; Realigns Products, PlantsIn other related auto news, Toyota has again topped GM in global sales for the first half of the year. The irony here is that GM is doing really well overseas--and especially in China and Russia. Unfortunately those global gains can't offset the losses here at home--again thanks to poor truck and SUV sales. Here's
AutoObesrver's take:
Halftime Score: Toyota Leads GM in Global Sales
- Permalink | Comments (7)
- Posted by: Bob Holland July 24, 2008, 7:18 AM
- Categories: Auto Industry, Ford, General Motors, Toyota, Trends
No no no! Why does Ford keep trying to save Mercury? The brand is obviously losing its relativity and should die in 2013 as planned.
Wow. I didn't know Ford was doing this bad. I thought Chrysler was the worst off.
YAY! Mercury is Still ALIVE!!
Its sorta like the cat that you try to kill but it some how continues to live!
well at least now I can buy my way into Lincoln services and not have to pay the price!
albook: Is that like E no longer equaling mc squared? :p I think you mean "relevance".
Ford can't get the Euro products here quickly enough. They need to scrap the fat and ugly Flex, put the Edge on a diet, and replace the Mach3 front end design with something less garish and actually attractive.
"Globally Ford will use 9 platforms, down from today's 25"
Cutting platforms you've already spent the R&D money on isn't going to offer substantial savings. Sure, production costs will go down a bit but this hurts Ford a great deal.
"Leverage global economies of scale is vital"
I can't believe Ford is just now understanding economies of scale is a key to profitability. C'mon, we're talking about the company that founded economies of scale in America.
Also, if Ford is planning on taking action by 2010, should shareholders expect more of the same in the meantime? I don't think Ford can continue to lose $8.7B each quarter from now till then.
Oh, I also found these funny:
"double its hybrid line and production in 2009"
That should be easy since they have a grand total of 1 (Escape/Mariner).
"double four-cylinder engine capacity by 2011"
Capacity, not production. It doesn't do much good to increase your factory size if you don't capitalize on the growth.
"[Ecoboost] will be offered on 80 percent of Ford's line by 2012"
While I like the Ecoboost, putting a small engine in big heavy vehicles is not going to do much for fuel economy. You'd think Ford would have learned from their V6 Explorers.
I also noticed that there was no production plans for the Ranger. What gives?
Ok, my tirade is over.
"[Ecoboost] will be offered on 80 percent of Ford's line by 2012"
While I like the Ecoboost, putting a small engine in big heavy vehicles is not going to do much for fuel economy. You'd think Ford would have learned from their V6 Explorers."
Well, an ecobooost V-6 should make more power than the average V-8. The same with a 4cyl (more than a V-6). So they will be more feul efficient.
Don't forget to add:
"Ford is also considering importing the Mondeo midsize sedan to the US"
They just love to play with us. hasn't Ford considered bringing it here 2-3 times before? But always the same result: It's too expensive!
And yes, Mercury is losing relevance. It's just been a long day.
That Ford Explorer is hot.