Ford’s Expected Losses
Last year, Ford had a loss of $12.7 billion. This loss marks the worst year in this company’s history. Previous to this event Ford’s worst year was in 1992 when they had a loss of $7.39 billion. A spokesperson for this company said that Ford is expecting to have continued losses through the remainder of 2007. In fact, they expect to have up to a $10 billion through 2009. On top of this they are still planning to spend $7 billion investing in new products.
You wouldn’t think that this would be possible since they just unveiled a Way Forward revival plan last year. Unfortunately though, over the summer of 2006 this plan proved that it was inadequate and so it was revamped in the fall. Obviously this did not work either. Now Ford is planning to close 16 plants (7 of which still have not been identified) and eliminate 44,000 hourly and salaried employees, along with some other actions.
This is important information as their stock is likely to plummet and thus now is the prime time to pull out of this company so that you do not take further losses. Obviously you are not going to want to purchase this stock now either.