Filed under: Ford, Earnings/Financials
Ford posts $8.7B Q2 loss, will convert three truck factories to car production
Ford posted an $8.7 billion loss for the second quarter of 2008 that it claims is due to sagging sales in North America and one time charges associated with plant closings. The Blue Oval's brutal second quarter included revenues that were down $5.6B to $38.6B and losses from continuing operations that totaled $1.4 billion. Virtually all the bad news came from North America, as Europe posted a $582m profit, and South America ended the quarter in the black as well. Ford also wrote down $8B in special charges related to its restructuring.
The bigger news came in the form of sweeping changes to Ford's lineup that will begin with switching three truck and SUV plants to car production beginning in December. The Cuautitlan, Mexico; Louisville, KY; and Michigan Truck Plant will all be converted to produce small cars. Cuautitlan will build the Fiesta, and the other two plants will build vehicles based on Ford's next gen C architecture based on the Euro Focus. Below are the main changes Ford announced for 2009 and beyond, and the list is pretty substantial. Note a new car for Mercury, which should deflect rumors that Ford's middle child is getting kicked out of the house. We'll give you more information as we receive it.
- Convert the entire Ford, Lincoln and Mercury lineup by 2010
- Delay closing Ford Ranger plant from 2009 to 2011
- Double hybrid production for 2009
- Add European Transit Connect small van to North America in 2009
- Add a new Lincoln seven-passenger crossover in 2009
- Introduce a new small Mercury for 2010
- Add European Ford Fiesta sedan and hatchback in early 2010.
- Bring next gen Euro Focus sedan and hatchback in 2010.
- Build unibody Ford Explorer in 2010 with fuel savings of 25%
- Double four cylinder engine production by 2011
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Reader Comments (Page 1 of 4)
Avinash machado 10:00AM (7/24/2008)
Nice rust in the picture.
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Allan 10:03AM (7/24/2008)
At least they're holding onto the Ranger for a little while. I see that as a good thing.
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The Luigiian 1:48PM (7/24/2008)
Yep, that was the first thing I saw.
Austin 10:03AM (7/24/2008)
The two kinda weigh eachother out.
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Tragedy 10:06AM (7/24/2008)
HA-HA /nelson
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FingFing 10:07AM (7/24/2008)
New small Mercury, eh? Any speculations on what it would be based?
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Dude 10:40AM (7/24/2008)
I'm sure it will be either a Focus or Fiesta with a Mercury grill. This is still Ford we're talking about.
Torrent 12:01PM (7/24/2008)
What if Ford gives Mercury the American Fuglycus--- I mean Focus......
2007RC46SP2 10:08AM (7/24/2008)
R.I.P.
Rust In Peace.
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Jawa 10:13AM (7/24/2008)
So will this new small Mercury be a rebadged Fiesta or Focus? I can't imagine that they'd be getting something unique. Let's see, will they call it Bobcat, Lynx, or Tracer? Probably no chance that they'll revive the name Comet...
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FamilyGuy 10:16AM (7/24/2008)
Found Off the Road Dead
Seriously, so when are they filing for bankruptcy?
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Vintage 10:24AM (7/24/2008)
Wow dude. Hilarious. How about fixed or repaired daily? Or first after race day? I've never heard any of those. By you saying it, I think you're really clever for coming up with something like that all by yourself.
PS: I'm not even a Ford fan. You're just lame.
2007RC46SP2 10:24AM (7/24/2008)
check your watch.
it wont be long till the ford lovers are here to bash you. :)
Brian 10:26AM (7/24/2008)
Your truly an idiot if you think they are going to file for bankruptcy. Do a little research before you post please. GM is in worse shape financially than Ford at this point.
2007RC46SP2 10:26AM (7/24/2008)
"first after race day?"
FARD?
Randy 1:42PM (7/24/2008)
FARD... do you mean FORD (First on Race Day?)
Oh and how about a little ©1991 (Comedian Joseph Donato) material!
HONDA
Helping Oriental Nations Destroy America
TOYOTA
Totalitarian Organization Yearningly Over Taking America
Chris 10:20AM (7/24/2008)
Ford is taking aggressive, serious action to transform their business model, they will be the first american make to establish themselves as small car leaders on par with the foreign brands. I'm excited for Ford's 2010 lineup (which is practically tomorrow in terms of lead times in the auto biz)/
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Iridium 10:28AM (7/24/2008)
A time of massive losses is not the time to incur even more massive losses retooling your entire operation. If the plan doesn't work then Ford is out of business.
It may be too late. If they would have done this when they should have 3 years ago then they would be fine.
Chris 10:31AM (7/24/2008)
People weren't lining up in the streets to buy foci and cobalts and corollas 3 years ago. I'm not saying Ford was correct or visionary in any way cranking out millions of f150s and explorers, but they were selling profitably for them. The market is at a place now where ford can sell their premium small cars in the US profitably, and they are betting the company on it. It's better than continuing to build trucks that consumers don't want at any price.
Ford Wannup 10:52AM (7/24/2008)
@Iridium:
so yeah....3 yrs ago is 3 yrs ago. What would you do differently than what they are doing today, given TODAY's reality? Are you suggesting status quo?