How can you stay in business and lose money?
I just don't understand how a company can lose money (12.7 billion) and even be in business. How can you meet payrolls, pay suppliers, taxes, insurance, etc. I just don't understand.
Just part of the article:
DEARBORN, Mich.(AP) Ford Motor Co. lost a staggering $12.7 billion in 2006, an average of $1,925 for every car and truck it sold and the worst loss in the company's 103-year-history.
The company that invented the assembly line and whose name was a byword for the auto industry warned it will bleed cash for two more years before it has a shot at making money.
Ford's loss, reported Thursday, came amid slumping demand for sport utility vehicles and other gas guzzlers and huge restructuring costs tied in part to the planned closure of 16 plants.
Last year's loss surpassed Ford's old record of $7.39 billion set in 1992.
A fourth-quarter loss of $5.8 billion helped drive up the red ink, which for the year amounted to $6.79 per share versus a profit of $1.44 billion, or 77 cents a share, in 2005.
Just part of the article:
DEARBORN, Mich.(AP) Ford Motor Co. lost a staggering $12.7 billion in 2006, an average of $1,925 for every car and truck it sold and the worst loss in the company's 103-year-history.
The company that invented the assembly line and whose name was a byword for the auto industry warned it will bleed cash for two more years before it has a shot at making money.
Ford's loss, reported Thursday, came amid slumping demand for sport utility vehicles and other gas guzzlers and huge restructuring costs tied in part to the planned closure of 16 plants.
Last year's loss surpassed Ford's old record of $7.39 billion set in 1992.
A fourth-quarter loss of $5.8 billion helped drive up the red ink, which for the year amounted to $6.79 per share versus a profit of $1.44 billion, or 77 cents a share, in 2005.
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your accounts recieveable is smaller than your accounts payable. 0 -
Loans against assets;
Ford is gonna get bought by a jap car maker or even Hundai. Unless they can bust the legacy cost on the cars they are doomed.0 -
they project they will sell 35 million dollars in goods but only sell 20 million dollars worth so they say they lost 15 million, just away to set the prices where they want them 0 -
58 has it guys - and it's not just Ford. Legacy costs = benifits contractually oblogated for in the '70's or so when the big 3 passed out money and benifits like candy. I know. I retired from GM in '92. They have been paying workers not to work for aroung 80% of their check for decades. Who were the idiots that negotiated these contracts?
So go ahead and buy your Hondas and etc guys. Yes, they have high quality cars. We have already lost the consumer electronics market.
20 years from now can we rely on China to supply us with our next generation of bombers?0 -
Simply, the unions are killing the American car manufacturers.[V] 0 -
All this time people thought the labor unions were by and large incompetent.....
I guess they will be stickin' to the man after all.
Too bad they cut their members throat in the process.[;)]0 -
quote:Originally posted by gbeggrow
Simply, the unions are killing the American car manufacturers.[V]
No...it was a couple of accountants with PHd's that had their head up their arse...and everybody followed suit. Don't fool yourself.0 -
Also, Ford has had some serious credibility problems over the years. Pinto. Explorer SUV with Firestone tires. Crown Victoria. These did not exactly bolster consumer confidence nor did they help assuage the legitimate safety concerns of police departments throughout the country. In recent years and IMO, the abandonment of the Taurus and the reintroduction of the Mustang were key gaffes made by Ford's marketing staff. 0 -
I thought this was going to be another USRAC/Winchester thread... 0 -
They have arranged for about $23 billion in loans on assets in order to try to get through the next two years. The hope is to return to a profitable picture by 2008.
Part of the reason the losses are going to be huge right now is because of the early retirement buyouts they are doing, but they are losing their butts mostly due to the slowdown in F150 and truck based SUV sales. Those things had been the high profit golden goose that was bailing out the rest of the product line, and that isn't happening now. It is not the fault of some accountant any more than it involves Elvis.
They are going to cut about 52,000 total employees, with about 14,000 of them being white-collar jobs.0 -
I'll bet their PRES/CFO or whomever still retires with golden parachute of about half billion bucks. Who wants to bet?? Tom 0 -
Really? I guess the top level executives I deal with on a daily/weekly basis up in Datroit at Ford Motor Company, and the ones I formerely dealt with at GM (Chevy Trucks) are incorrect. Seems to me they all have three major issues on their minds these days in casual conversation.
1. The Unions
2. Toyota
3. Their future employment (and by the way two of my old contacts at Ford took the "buyout" two weeks ago)
In addition, I have a new parter that signed on early last year that I also now deal with on a regular basis based in Southern California that goes by the name of......Toyota. I see it every day, but then again I don't know what I'm talking about.
quote:Originally posted by dcloco
quote:Originally posted by gbeggrow
Simply, the unions are killing the American car manufacturers.[V]
No...it was a couple of accountants with PHd's that had their head up their arse...and everybody followed suit. Don't fool yourself.0 -
It's the design and engineering of the products. Mercedes workers make tons more that Ford union employees, and the company is strong as a rock. Isn't it? How about Honda motors? Aren't their workers unionized, and what about Lexus?
You've got CEOs FCOs and shareholders getting way too much for doing absolutely nothing. Millions of bucks wasted instead of being turned back into the business to advance quality and provide service.
You can't go wrong training and paying quality employees who are doing the ACTUAL WORK! Profit is not sustained by clever marketing or outsourcing jobs to peasants without a stake. There is not a CEO in the world worth a million dollars a year based on the actual contribution to the manufacture of the product or service they provide. The wheeling and dealing that makes it appear so is a smokescreen, a false impression creating envy like the "Emperor's Clothes". If you're not acquainted with that fable, look it up and have somebody explain the moral of the story.
[:0][:o)][:D]
Wait just one moment while put on my asbestos suit....OK, I'M READY, LET ME HAVE IT!!!!0 -
Stockholders getting way too much? The dividend has been ten cents per quarter of the year since 2002, and dropped to a nickel last year. That's twenty to forty cents per year per share, and that's excessive? WOW! Compared to the price of the stock they would earn more in a long term savings account, and it would be insured. 0 -
quote:Originally posted by dlrjj
Stockholders getting way too much? The dividend has been ten cents per quarter of the year since 2002, and dropped to a nickel last year. That's twenty to forty cents per year per share, and that's excessive? WOW! Compared to the price of the stock they would earn more in a long term savings account, and it would be insured.
Well, you're right! With different stock, they could be doing nothing for a whole lot more than that![:p][:D]0 -
Maybe my 06 mustang will suddenly become a collectors item!!!
Hmmmmmmmmmmmmmmmm.[;)]0 -
They didn't diversify into armored robot suits like I suggested[}:)] 0 -
Very simple, they lose money on every deal but make it up with volume. 0 -
quote:Originally posted by Frogbert
It's the design and engineering of the products. Mercedes workers make tons more that Ford union employees, and the company is strong as a rock. Isn't it? How about Honda motors? Aren't their workers unionized, and what about Lexus?
Honda is not unionized and probably will never be because the employees don't want it. Honda treats their employees well, very well.0 -
It was also reported Fords Management will recieve their bonus's . Merging will be in their future. 0 -
The bonus decision is still up in the air, but it's one of those that has a bad look to it regardless. Ford hasn't paid bonus money for awhile and these were designed last year to be paid to managers who met certain cost cutting objectives, but it's going to tick people off who view this as a reward for cutting jobs. Probably a bad move if paid, and won't help with the upcoming union contract negotiations. 0 -
Ford's wooing of the gay market hasn't helped their image either. 0 -
Other than the trucks, what does Ford make that is worth buying?
I'm serious.
The Ford Focus?
The Ford Fusion?
The Ford Five Hundred?
The Ford Crown Victoria?
I would expect thier other name plates to at least make a little money for them but when it is pissed away on projects the the Ford "Edge", it's pretty easy to understand why they don't make any money.
Other than the Mustang and their truck line they just refuse to market to the consumer.0 -
GM lost nerly as much in 2005 and it looks like they will have a loss of at least a couple billion for 2006. I see they are also considering dumping Allison Transmission. 0 -
In all reality when Ford stock hits bottom... Buy.. Buy.. Buy...[:D] 0 -
Here's a cut and paste from AFA:
Rather than backing down from its support of homosexuality, Ford Motor Company has apparently taken a "rub it in your face" attitude.
On the January 16 episode of "Dirt," which airs on the FX channel, Ford helped sponsor one of the most explicit, sickening homosexual scenes ever shown on television.
Because it is so explicit, I could not even include a description of it here. I hope you will simply trust me. However, if you want to read our review of the scene, or to see the video of the scene, click here. Be forewarned, it is extremely graphic.
Ford has made it extremely clear that they have no intentions of ending their support of homosexuality. Among other things, the company reneged on their agreement to remain neutral in the culture wars, increased their support of homosexual publications, sponsored TV programs pushing homosexuality and required employees to attend "diversity" training promoting homosexuality. For more information on Ford's track record, go to BoycottFord.com.
Take Action
Send an e-mail to Ford's new CEO Alan R. Mulally.
Forward this e-mail to your local Lincoln, Mercury, Volvo, Jaguar, Land Rover, Mazda or Ford dealer (all owned by Ford). Find their e-mail address here (click on the auto icon). Ask the dealer to forward it to CEO Mulally.
If you haven't already done so, please sign the Boycott Ford Pledge.
Print out the Boycott Ford Petition and distribute it at Sunday School and church.
Extremely important! Help us get the word out about Ford by forwarding this to friends and family! For more information on Ford's support for the homosexual agenda, click here.
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If you think our efforts are worthy, would you please support us with a small gift? Thank you for caring enough to get involved.
Sincerely,
Donald E. Wildmon, Founder and Chairman
American Family Association
P.S. Please forward this e-mail message to your family and friends!0 -
There was a very intersting article about the US auto industry in Forbes within the last 3 months. Accoprding to this article, if there is a decline in auto industry sales within the next two years, Ford doesnt't have a chance. Toytoa, etc, will be able to pick up some assets real chaep. 0 -
you cant forvever 0 -
Let's do like United Airlines.
Go bankrupt. Dump the pensions on the federal government. Reorganize and sell at a higher price.0 -
or a worthless pile of crap b/c there are no parts
[:o)]quote:Originally posted by stevenrayspeck
Maybe my 06 mustang will suddenly become a collectors item!!!
Hmmmmmmmmmmmmmmmm.[;)]0
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