Declining sales, huge financial losses have Ford and other automakers changing how they do business - WDRB 41 Louisville News

Declining sales, huge financial losses have Ford and other automakers changing how they do business

The changes Ford is making mirrors what General Motors is also going through.  Declining sales and growing financial losses are forcing American automakers to change the way they do business.

Ford is making rapid changes.  The company calls it an accelerated transformation plan.  Why? Because Ford lost $8.7 billion from March to July of this year.

Ford claims a rapidly-changing business environment is the reason for the change in business.  The fact is, Ford has car lots full of SUV's and trucks it can't sell since gas prices went up. Suddenly Ford and GM have had to make immediate changes to build smaller, fuel-efficient cars.

Besides losing nearly $9 billion in the second quarter this year, Ford has had cost reductions of $1 billion and a pre tax loss of $1 billion.

There is a plus side to the mess at Ford.  Its European and South American operations are profitable, and the company claims it has momentum in Asia.

Even with all of the changes announced Thursday, going forward through next year and into 2010, Ford executives say don't look for a quick recovery.

How quickly the American business turns around depends on how efficiently Ford can build smaller, fuel-efficient vehicles and more importantly, how they are viewed and accepted by the American car buyer.

Powered by Frankly
All content © Copyright 2000 - 2017 WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.