Citing a sharp decline in vehicle demand, Ford’s financial performance suffered in nearly every market around the globe. The carmaker lost money in its North American, European, and Asia-Pacific operations, with only its South American unit and Mazda stake generating any income. One of the worst individual performers was Ford’s Volvo subsidiary, which alone lost $736 million in the fourth quarter and will soon be on the open market.
Some good news was that Ford’s fourth-quarter cash burn rate was slower than the $7.7 billion lost in the third-quarter, and that its market share actually increased in the U.S. and Europe.
Ford insists that it has sufficient liquidity to fund its business plan and product investments for the coming months, revealing that it finished 2008 with $24 billion in available liquidity. The carmaker also has funds from a temporary asset account, which equates to an additional $2 billion.
Importantly, Ford also reconfirmed that, based on current planning assumptions, it won’t need a bridge loan from the U.S. government. It will, however, draw on available credit lines to the tune of $10.1 billion, which it expects to receive by February 3.
According to its own predictions, the carmaker expects to break-even in 2011.