Autoblog

Ford Motor Company’s Chairman and CEO Bill Ford is ruling out bankruptcy for the Blue Oval. The Henry Ford scion believes that the company’s ‘strong liquidity’ ($31 billion in the coffers), downsizing efforts and profitable overseas operations will buoy the No. 2 automaker’s fortunes.

Ford has turned in three straight years of profits globally (including $2 billion in 2005), but that’s a 42-percent decline over 2004, and the Blue Oval lost $1.6B in North America, with market share down to 18-percent (it was 26-percent just ten years ago).

Ford did acknowledge that American auto industry is facing unprecedented challenges: “We’ve never had these kinds of wind buffeting us.”

The company’s NYSE shares fell 11 cents on Wednesday to close at $7.57.

[Sources: Associated Press via Newsday; Stern.de]

Tier-1 automotive parts supplier Dana Corp. announced Monday that is discussing financing issues with banks and lenders, with hopes of coming up with a plan within a two-week timeframe.

On this news, its stock shares rebounded sharply (18-percent) to $1.78 on the New York Stock Exchange after tanking 52-percent last Friday to its lowest price in more than 36 years.

Dana has been taking a beating on the Street since it restated its earnings last autumn and revised its profit projections for 2005 due to accounting issues. Energy and steel price increases haven't helped matters either.

Regardless, analysts see this as a good sign, in that Dana doesn't view itself as a dead company walking, contemplating bankruptcy.

[Source: Reuters]