Ford posts $8.7B Q2 loss, will convert three truck factories to car production
Filed under: Ford, Earnings/Financials
Ford posted an $8.7 billion loss for the second quarter of 2008 that it claims is due to sagging sales in North America and one time charges associated with plant closings. The Blue Oval's brutal second quarter included revenues that were down $5.6B to $38.6B and losses from continuing operations that totaled $1.4 billion. Virtually all the bad news came from North America, as Europe posted a $582m profit, and South America ended the quarter in the black as well. Ford also wrote down $8B in special charges related to its restructuring.
The bigger news came in the form of sweeping changes to Ford's lineup that will begin with switching three truck and SUV plants to car production beginning in December. The Cuautitlan, Mexico; Louisville, KY; and Michigan Truck Plant will all be converted to produce small cars. Cuautitlan will build the Fiesta, and the other two plants will build vehicles based on Ford's next gen C architecture based on the Euro Focus. Below are the main changes Ford announced for 2009 and beyond, and the list is pretty substantial. Note a new car for Mercury, which should deflect rumors that Ford's middle child is getting kicked out of the house. We'll give you more information as we receive it.
Convert the entire Ford, Lincoln and Mercury lineup by 2010 Delay closing Ford Ranger plant from 2009 to 2011
Double hybrid production for 2009
Add European Transit Connect small van to North America in 2009 Add a new Lincoln seven-passenger crossover in 2009 Introduce a new small Mercury for 2010
Add European Ford Fiesta sedan and hatchback in early 2010. Bring next gen Euro Focus sedan and hatchback in 2010. Build unibody Ford Explorer in 2010 with fuel savings of 25% Double four cylinder engine production by 2011
[Source: Free Press, Photo: wryonedwards| Licensed under Creative Commons 2.0]
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