The Detroit News is reporting that Ford will accelerate its Way Forward Plan in light of the $123 million loss it posted for the second quarter, which was much larger than what analysts were expecting. Mark Fields, Ford's President of the Americas, and his gang will announce in the next 60 days what form this acceleration will take, but we can expect Ford to move faster in meeting its goal of shedding 30,000 factory jobs and closing 14 factories by 2012.
Ford's second quarter loss was so large, some analysts are questioning whether or not the Blue Oval has enough cash to last through the Way Forward Plan. Currently Ford has $23.6 billion in cash, but David Healy of Burnham Securities Inc. believes Ford will spend $10 billion of it this year and another $14 billion next year, effectively wiping it out.
The same analyst also claims Ford has "absolutely the most boring product line" in the industry. Is that why Ford is losing money hand over fist, or is it more systemic in the way the Blue Oval operates and does business?
[Source: The Detroit News]