Ford Posts Net Loss of $123 Million
Ford Motor Co. reported a surprise $123 million second-quarter net loss and said it would accelerate or deepen its restructuring plan, in an acknowledgement by the auto giant that it had underestimated tough industry conditions and its own problems.
Ford Chairman and Chief Executive Officer Bill Ford said the No. 2 U.S. auto maker by production will need to move "farther and faster" on a North American restructuring plan that was originally supposed to close 14 plants and eliminate as many as 30,000 hourly jobs by 2012. The company said yesterday that it will detail further restructuring actions within the next 60 days and will decide whether it should speed up the previous goal or make deeper cuts than planned.
Mr. Ford renewed his pledge that the auto maker will become profitable in its crucial home market no later than 2008. But internal Ford financial projections suggest that goal could be increasingly difficult to achieve, largely because of the fall in sales of the F-series pickup truck, say Ford insiders. F-series sales tumbled 9.7% in June and are down about 2% this year. The F-series is Ford's No. 1-selling vehicle globally and a mainstay of its automotive profits.
Credits: Oneshift News Team
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