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The Market Speaks: Ford Reports $12.7 Billion Loss for 2006

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posted on Jan, 26 2007 @ 01:36 PM
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Consumers voted with their dollars last year: Ford Motor, famous for pushing gas-guzzling trucks and SUVs, reported its biggest loss in its 103-year history - a $12.7 billion loss for 2006. The astounding figure represents a loss of $4,700 on every vehicle sold. Apparently, people recognize that climate change is real and greenhouse gases impact the environment. Ford's survival strategy focuses on marketing a "a stronger lineup of smaller vehicles that offer better gasoline mileage."

 



www.washingtonpost.com
Ford Motor yesterday reported a $12.7 billion loss for 2006, its biggest in its 103-year history, as the company struggles to correct strategic mistakes, fend off Asian rivals and remake itself into a smaller, more competitive automaker.

The loss, compared with a profit of $1.4 billion in 2005, underscores the difficulty of Ford's campaign to slash costs, reduce its workforce, close plants and re-engineer its assembly lines to adapt quickly to shifts in the marketplace. Ford hopes to emerge from its restructuring with a stronger lineup of smaller vehicles that offer better gasoline mileage. The strategy also would leave Ford with as little as 14 percent of the market in 2008, compared with 25 percent in the late 1990s.

...Ford, which said it spent $9.9 billion on restructuring costs last year, blamed the loss in 2006 on a profit collapse in its truck-dependent North American division.



Please visit the link provided for the complete story.



Voters have little power in the NWO, and little ability to influence policy, except as consumers.

Nice to know boycotts still work, even when they're not organized.


Related News Links:
phoenix.bizjournals.com
news.moneycentral.msn.com

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posted on Jan, 26 2007 @ 03:40 PM
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I find this somewhat amusing - especially since critics against regulation always say, "Let the market choose."

Well, it did.


Sad thing though, Ford is cutting its daycares to help make up the losses. Looks like they'll never get their priorities straight.



posted on Jan, 26 2007 @ 08:49 PM
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Originally posted by soficrow
I find this somewhat amusing - especially since critics against regulation always say, "Let the market choose."


Well Im sure that the Ford employees and those in its retirement system will be comforted by your amusment. However, to solely blame a suddently "carbon conscience" public is ignoring the crippling effect rising health care costs have had on EVERY company.

This is the wave of the future IMHO and most companies are shedding health care plans left and right to aviod the fate of Ford and perhaps GM as well.



posted on Jan, 26 2007 @ 09:05 PM
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Could be a backlash by being named one of the most "Gay Friendly" businesses in America?

But mostly it is Unions that are killing Ford.

www.worldnetdaily.com...

I know it's World Net Daily, but it could be worse....It could be the NY Times.



posted on Jan, 26 2007 @ 09:10 PM
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Originally posted by RRconservative
Could be a backlash by being named one of the most "Gay Friendly" businesses in America?

But mostly it is Unions that are killing Ford.

www.worldnetdaily.com...

I know it's World Net Daily, but it could be worse....It could be the NY Times.


Actually, its because consumers dont want vehicles that they need another loan from the bank just to pay for the fuel in these vehicles. Toyota, Honda, etc. businesses are booming because their cars use far less fuel than Ford & GM.



posted on Jan, 26 2007 @ 09:10 PM
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There are alot of corporations that offer domestic partner benifits etc. as well. You don't see them being target on this scale.

The UAW is sometimes its own worst enemy, but this is the first of many such corporations that will simply collapse under the health care burden. The Starbucks CEO recently called the rising cost of health "out of controll"



WASHINGTON - Starbucks Corp. will spend more on health insurance for its employees this year than on raw materials needed to brew its coffee, the company's chairman said Wednesday.

Howard Schultz, whose Seattle company provides health care coverage to employees who work at least 20 hours a week, said Starbucks has faced double-digit increases in insurance costs each of the past four years.

Schultz made the comments Wednesday at a meeting with Sen. Patty Murray, D-Wash., and Rep. Adam Smith, D-Wash. The event was one of several organized by Schultz and other executives to call attention to what they called a growing health care crisis.

Health Care


[edit on 1/26/07 by FredT]



posted on Jan, 27 2007 @ 02:24 PM
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Hmmm.

From the quote above:



...Ford... blamed the loss in 2006 on a profit collapse in its truck-dependent North American division.




No word about healthcare costs.




posted on Jan, 27 2007 @ 04:31 PM
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The fall in truck sales was a killer, but health care costs esp. for thier large number of retierees, make it increasingly impossible to even eek out a profit.



General Motors recently had to announce that its earnings for the current year would fall far short of expectations. One problem for the automaker is health care costs: GM will pay in excess of $5 billion this year to insure its workers and retirees.
www.npr.org...




GM's health care costs are over $1500 per car. Chrysler's are $1400, Ford $1100. Honda, Toyota, et al are a fraction of these figures. That disparity crystalizes the economic problem facing US industry (subscription required) competing in a world economy.
www.joepaduda.com...



posted on Jan, 27 2007 @ 05:09 PM
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www.newport-imports.com...

with concept trucks like that one, its a wonder they are still in business. I bought a Dodge Dakota last week, and its not exactly gas efficient.

Let me tell you Sofi, a majority of people still don't care about the environment. If SUV sales went down its because its hurting their wallets, not their environment.



posted on Jan, 27 2007 @ 06:13 PM
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I'm sure for Ford to stay alive, all sorts of concessions will be asked of the workers but I'll bet dollars to donuts that the CEO and others in the high offices will still get their sweet yearend bonus.

12.7 billion in losses but the suits will never suffer.

My prediction is that they will receive some great govt. contract just like Dodge did under Lee Iococa when Chrysler was in a similiar situation.

[edit on 27-1-2007 by whaaa]



posted on Jan, 28 2007 @ 08:01 PM
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Originally posted by whaaa

12.7 billion in losses but the suits will never suffer.

My prediction is that they will receive some great govt. contract just like Dodge did under Lee Iococa when Chrysler was in a similiar situation.




Sounds about right to me.




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