Ford Motor Company, the only Detroit automaker not currently digging in taxpayer pockets, posted a $14.6 Billion loss for 2008, its largest loss ever, and is buckling down for a tough 2009.
Unlike its competitors GM and Chrysler, both of which are right now suckling at the teat of nanny government, Ford has chosen to try and remain independent while competing against their own tax dollars in the form of government bailout money given to their competitors.
I've never been a big Ford guy. In fact, I come from a Chevy family. But no longer. Here's hoping that Ford can right the ship without the government's "help," and here's hoping I have the scratch to buy a Ford sometime this year. It's going to be a challenge for them, competing against the US Govt Auto Division (GM and Chrysler), and I'd like to show solidarity. I'd encourage anyone shopping for a car to do the same.
From Yahoo News:
After the worst annual loss in its 105-year history, Ford Motor Co. still doesn't plan to seek government aid, but it's borrowing more money and hinting at further restructuring to brace for a tough 2009 and any surprises from the unpredictable economy..
The second-largest U.S.-based automaker on Thursday reported a $14.6 billion net loss for 2008, beating its old record of $12.6 billion set two years earlier. Ford lost $5.9 billion in the fourth quarter, but more importantly it spent $5.5 billion more than it took in, dropping its cash reserves to $13.4 billion at year's end.
The company, like other automakers, predicted a slow start to the year with a small recovery in the second half aided by government stimulus packages. But Ford is behaving like it's expecting things to get worse. The company told lenders Thursday that it wants to borrow the remaining $10.1 billion of its secured credit line. The money is to arrive Tuesday, but Ford executives said they don't plan to use it for operating expenses.
"We took this action because of our concerns about the growing instability of the capital markets," Chief Executive Alan Mulally said on a conference call with reporters and industry analysts. "The worldwide economic slowdown, driven by tight credit markets and weak consumer confidence, has shaken the foundation of even the strongest companies in the automotive sector and other industries."
Ford said its financing arm would cut about 20 percent of its work force, or 1,200 full-time and contract jobs, as it deals with a smaller U.S. market.
The Dearborn-based company also reduced its forecast for industrywide U.S. sales this year from 12.5 million to a range between 11.5 million and 12.5 million
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