It’s over for any of the big three. The huge sales declines posted recently, Kerkorian’s sell off of Ford stock, and a $25 Billion loan that has done little to prop up stock prices or seemingly influence the balance sheets of any of the automakers. The high cost of union employees, bankrupting pension programs and higher components and gas prices have virtually sealed the deal on any chance of a recovery. Read more…
Not just but 2 years ago was Kirk Kerkorian (the Las Vegas real estate billionaire) heavily entangled in the General Motors corporation. Now after Ford’s profitability, the investor is chasing a serious stake in Ford. Kerkorian dumped GM in favor of more investment into his Las Vegas properties, neither of which have proven to be a good investment. GM is still suffering from large pension payments and Las Vegas has cooled with the economy. Read more…
You wouldn’t believe it but Ford has posted a quarterly profit of $100 Million for the first quarter of 2008. While the automaker has struggled with keeping up on pension programs and the weight they put on the price of automobiles finally good news and profits are coming out of the company. Ford still expects to lose money for the full year but spouts that it should return to profitability in 2009.
Strong profits in Europe and South America followed a weakening dollar and improved the overseas division. Back at home though, Ford struggled to sell its extensive line of “gas-guzzlers” and large trucks to consumers as sales were down 9% year over year. The weakening US sales were easily overwritten by foreign sales however. Read more…
Ford Motors has been going down the tubes only to benefit Tata motors, the equivalent of Toyota to developing nations. The American automakers struggle with Unions and pension plans has forced Ford to sell the Jaguar brand and Land Rover to Tata motors for just $2.3 Billion, less than half the $5.2 Billion that Ford paid for both brands. Read more…
A British newspaper just reported that Ford Motor Company is preparing to sell Volvo. This is according to unnamed sources in London. The source also says that Ford made this decision within the past 2 weeks. However, the timing of the sale had yet to be decided. As such, no bank has yet been appointed to handle the transaction, which could be worth $8 billion - $2 billion more than what they had paid Sweden’s Volvo AB for it. Read more…
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. Read more…
US auto makers are driving away investors because of negative numbers and at the same time oil companies are getting the attention of many because of all time profit. Whats driving these companies in two different directions? The price of oil plays in, but there are other things contributing to this mayhem. Read more…