Ford posts $8.7 billion loss on asset write-downs

[dkf]

Ford posts $8.7 billion loss on asset write-downs, plans to bring 6 small cars from Europe

DEARBORN, Mich. (AP) -- Ford Motor Co. said Thursday it lost $8.67 billion in the second quarter and will retool two more North American truck and sport utility vehicle plants to build small, fuel-efficient vehicles.

The net loss includes $8.03 billion worth of write-offs because of a decline in value of North American assets and Ford Motor Credit Co.'s lease portfolio. Even excluding those items, Ford lost 62 cents per share, worse than Wall Street expected. Twelve analysts surveyed by Thomson Financial, on average, expected a 27 cent loss per share.
...
Ford also announced that it will bring six European small car models to North America by the end of 2012 as it deals with a market shift from trucks to cars brought on by high gasoline prices.
...
The company identified only three of the European small vehicles it will bring to North America: the Transit Connect small van, the European Focus and the subcompact Fiesta. Most will be built in North America, and Leclair said some might be exported. Ford already has announced that the Transit Connect will be imported from Turkey.

http://biz.yahoo.com/ap/080724/earns_ford.html

So Ford finally realizes that gas guzzlers are not the way to go. Why they couldn't figure this out earlier is beyond me. Instead they wait until it slams them in the face. Ugh.

[enid602]

1. GM

I'm living in Argentina for several months, and GM cars are big here. You wouldn't recognize them, though if not for the Chevy logo. They're like small European cars.

[dkf]

2. Interesting.

So they do small cars everywhere else but not here. That makes me mad.

[enid602]

11. Chevy

I'd buy one; same basic bodies as the Peugeots and Fiats that are so popular here. Most newer cabs and cop cars in Buenos aires are very small Chevies.

[Blue_Tires]

3. i hope they are able to turn it around

[Coexist]

4. More fuel efficient cars, fewer gas guzzlers - I see that as a good thing

for the planet and autoworkers.

[dsotm-wywh]

5. Why doesn't Ford....

investigate what makes Toyota and Honda cars last so long without needing major repairs and then make their vehicles the exact same way? Ford and GM are always going to suffer unless they make a car that compares in reliability to Toyota and Honda. I would love to buy an American car but I just can't afford to have to take it in every six months for a major repair.

[dkf]

6. True.

Something about the Japanese cars feels more solidly built too.

[Dreamer Tatum]

7. Ford's quality is up, but quality requires attention and devotion...

...which are qualities that American auto makers cannot produce from their production lines.

Don't get me started on fit and finish.

[SmileyRose]

9. Excuse me but bullfeathers.

I'll grant you, there was a time when American car companies took their customers for granted and got very sloppy. And back in the 70's and 80's the japanese cars were FAR better. I would think so. The Japanese brands had HUGE financial advantages over American car makers and could afford to put more expensive materials into a comparable priced car. Now that the financial playing field is beginning to level the fact is quality has leveled out too. Once the "foreign" car makers lose their tax abatements on their currently newer plants and are saddled with an abundance of retirees we'll see. I'd put the current Ford Fusion and Chevy Malibu up against Camry/Accord and certainly Avalon any day.

The biggest problem Ford and GM face is the fact they DID take their customer for granted in the past and when it came to problems, they ran away instead of facing head on. At this point, the reality on the ground doesn't much matter. What matters is that people instinctively think Ford and GM suck lips. They blew it completely. Once a reputation is lost it's gone. It's going to be mighty hard to get it back.

[dsotm-wywh]

10. Ok...YOU"RE ON!!!

I'll be happy to take my Camry/Accord up against the current Ford Fusion and Chevy Malibu IF you can get them started and IF they can go more than a mile without needing a new transmission.

[NightWatcher]

8. have you seen their new UGLY car/crossover?

16 mpg per Ford. Starting at $31,500.

I'm sure the masses will go for it

[anonymous171]

12. Finally. Took them long enough.