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Ford announces $129 million Q3 loss

 
4 1,682 views Nov 7, 2008

Ford's swimming against the current of product delays with its plan for the future

Ford's swimming against the current of product delays with its plan for the future

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Despite posting a gross operating loss of $2.7 billion for the third quarter, Ford Motor Co.'s net after-tax third quarter losses only amounted to $129 million. That's a significant improvement against last year's $380 million third-quarter loss, though the pre-tax picture is much more grim: a $194 million profit last year was replaced with a $2.7 billion loss in Q3 2008.

Ford has a plan for combating the current downswing in the American market, however. Among its 'improvement actions' is a 10% reduction in 'salaried personnel-related costs', likely meaning a significant number of white-collar layoffs. Earlier this year Ford announced it would be downsizing its North American salaried staff by 15%, making this secondary cut all the more significant.

Cutting costs in the manufacturing and advertising side of operations is also part of the plan. Reducing overall inventories and selling off 'non-core assets' will also help improve liquidity and Ford's bottom line.

“We have a strategy that is broad and specific enough to handle the dramatic changes in today’s environment. We will continue to assess the rapidly changing business environment and modify implementation of our plan accordingly,” said Ford President and CEO Alan Mulally.



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Comments (4)

  1. ma_LikeSoup avatar LikeSoup Posted: 11/7/2008 8:50am PST

    The only way to not think about money is to have a great deal of it. To get something you've never had, you must be willing to do something you've never done. Unless you believe you will not understand. www.LikeSoup.com
     
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  2. ma_NoNameDenton avatar NoNameDenton Posted: 11/7/2008 1:52pm PST

    And the future president of America wants to give these people money.
     
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  3. ma_Edward avatar Edward Posted: 11/7/2008 1:53pm PST

    White collar job cuts? Hmmmmmm? Mark Fields is getting canned at last? But not without getting $10 million in severance pay.
     
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  4. ma_HECTOR avatar HECTOR Posted: 11/8/2008 2:35pm PST

    This loss is unexplainable. I mean, Ford builds the Flex AND the Taurus !!
     
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