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Old 03-03-2006, 09:17 AM   #1
igor
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Ford NA plans loss until 08.. fears GM Bankrupcy

Ford Expects More Losses

Ford expects its basic automotive business to lose money again in 2006 as it struggles to trim costs. Ford disclosed the anticipated loss in a 10K report it filed with the U.S. Securities Exchange Commission. Ford also said the losses in the automotive business would not extend beyond 2008. In another passage of the report, Ford cautioned that the bankruptcy of a major competitor could create problems for Ford. Bankruptcy would give the unnamed competitor an unfair cost advantage if its labor contracts were wiped out by the bankruptcy judge. The cryptic comments were dropped into the middle of the report and indicated Ford executives are concerned about the possible consequences of a bankruptcy filing by General Motors Corp. However, Rick Wagoner, GM's chief executive, has said several times that bankruptcy is not an option for GM.
Ford also disclosed that it is considering a $1 billion charge in connection with "The Way Forward" restructuring plan, which calls for eliminating 30,000 jobs and closing 14 facilities by 2012 under the plan outlined in January. As part of the restructuring, Ford plans to close assembly three assembly plants in Atlanta, St. Louis, and Wixom, Mich., by the end of 2007. -Joe Szczesny

source: www.thecaroconnection.com "The Daily edition 3/3/06
------------------------------

This all seems in line with the january declarations.
and other declarations, that indicate Ford is aiming for a MUCH smaller company in the NA market, thus letting it slide for now to stabilize in 2008 at a lower-than-today level.

BTW Notice the $1bn planned for the compensation for the fired workers.

More on this from DetNews:
-------------------------------
1bn planned for restructuring
http://detnews.com/apps/pbcs.dll/art...20/1148/AUTO01

Ford, UAW healtcare deal get tentative OK
http://detnews.com/apps/pbcs.dll/art...79/1148/AUTO01

Igor


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Old 03-03-2006, 09:41 AM   #2
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Good find igor. If I were Ford though I would be worried about the following:

1. The prediction that losses would not extend beyond 2008. Why, what makes them think they won't?

2. Ford should not be worrying about GM declaring bankruptcy, when they are in the same boat. Actually, I would think Ford would be a candidate for bankruptcy reorg sooner than GM.

And I read your other post about the death of SVT. And they think that is the "Way Forward?" Clueless company. Absolutely my last Ford product ever will be the car I'm currently driving in my sig, and probably the last great car that will ever come from that useless company. I read if it was not for strong product sales in Europe (where they actually make good cars) Ford would have gone under by now. Ford dying in the NA market would not be a big deal, too many other good vehicles to choose from. I don't know anyone who would miss them going here in America, except for the die-hard Mustang lovers.
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Old 03-03-2006, 10:23 AM   #3
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I'm actually looking at BMW's 325i now. Why?

They will still be around in 5 years.

4 years/50,000 mile free service, and they even repair or replace normal wear and tear items!

Starts at a little over $30k, but will still fetch $20k in good shape 5 years later.

Plus, it's just the finest sports sedan on the market.
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Old 03-03-2006, 10:23 AM   #4
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They certainly are in better financial shape than GM, what makes you think that they are a better candidate for Chapter 11?
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Old 03-03-2006, 11:04 AM   #5
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Quote:
Originally posted by 007
Good find igor. If I were Ford though I would be worried about the following:

1. The prediction that losses would not extend beyond 2008. Why, what makes them think they won't?

2. Ford should not be worrying about GM declaring bankruptcy, when they are in the same boat. Actually, I would think Ford would be a candidate for bankruptcy reorg sooner than GM.

And I read your other post about the death of SVT. And they think that is the "Way Forward?" Clueless company. Absolutely my last Ford product ever will be the car I'm currently driving in my sig, and probably the last great car that will ever come from that useless company. I read if it was not for strong product sales in Europe (where they actually make good cars) Ford would have gone under by now. Ford dying in the NA market would not be a big deal, too many other good vehicles to choose from. I don't know anyone who would miss them going here in America, except for the die-hard Mustang lovers.
uhh dont forget the F-150 lovers......and um the obvious one because this is a FOCUS FANATICS FORUM.

Not to mention, this kinda thing has happened before to the demostic market, its really not that they sell horrible products its that the Imports are pretty much taking over. I dont remeber the dates but maybe like 15 or 20 years ago GM tanked pretty badly and the import companys were way up in sales, but then GM and the other domestic companys came back. It really is a cycle and im not really worried about either of them ceasing to exist.
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Old 03-03-2006, 11:31 AM   #6
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Quote:
Originally posted by 007
Good find igor. If I were Ford though I would be worried about the following:

1. The prediction that losses would not extend beyond 2008. Why, what makes them think they won't?

2. Ford should not be worrying about GM declaring bankruptcy, when they are in the same boat. Actually, I would think Ford would be a candidate for bankruptcy reorg sooner than GM.

And I read your other post about the death of SVT. And they think that is the "Way Forward?" Clueless company. Absolutely my last Ford product ever will be the car I'm currently driving in my sig, and probably the last great car that will ever come from that useless company. I read if it was not for strong product sales in Europe (where they actually make good cars) Ford would have gone under by now. Ford dying in the NA market would not be a big deal, too many other good vehicles to choose from. I don't know anyone who would miss them going here in America, except for the die-hard Mustang lovers.
By 2008 they should have a sleet of new and refreshed sars out.. everything from Fivehundred, Freestyle, Escape and their counterparts in Mercury and Lincoln will be redesigned. Fusion trio and Edge couple will have a chance to rack up marketshare and bring in profits. New Focus should be out, and also should the B segments - Fiesta and Bronco. Taurus, LS, and other models selling under costs will be stopped by then and about 4-5 factories closed.. about 20k out of the 35k workers slotted for firing will be out as well.. so in short, by 2008, major new products, no slow selling old products and less costs... seems like a good recipe to overturn a moderate 1.6bn loss.

Fields promised 2008 to be finally profitable for Ford NA ... it should be enough time for them to do all this.

As was said before.. Ford is nowhere near bankrupcy. FoMoCo could feel that Ford NA is not fixing its troubles, and could decide that letting it go bankrupt would help... but that is unlikely due to the fact that the sheer sight of bankrupcy scares customers. Other than that FoMoCo is healthy as can be, with steady profits... The worry about GM bankrupcy is, as was mentioned in the article, about cost disadvantage. If GM can shut down and kill union contracts, thet get out of commitments that Ford cannot get out of.. it would bring Ford to disadnatage, because they would still have to deal with the huge benefits everyone is trying to shed.

Finally.. the SVT rumor is such a ridiculous rumor it is not funny I trust FJ folk much more than some bobble head at a regional paper... SVT engineers are working on Roush projects as well as sports projects for Non-USA models - Focus RS anyone? I know it sucks for us people in the US and Canada, but the truth of the matter is, Ford NA does not have the money to give bussiness to SVT, so SVT is working for Ford of Europe and others in FoMoCo who do have this money.. they are busy alright.

Transition period is always hard.. .but for major improvements, major changes are needed... Ever wonder how much better the US legal and social system could have been if someone had the guts to bite the bullet and rewrite the constitution and the major laws so they actually work in the 21st century?

Right now Ford, unlike GM is not leaving any stone unturned... we need to wait to see the results, but all this pain is a result of efforts to make it a much better company.... without a change they would be $9bn a year in the hole..

Thanks to painful changes that the team under Bill Ford has already done in the rest of FoMoCo.. they are 2bn in the black... now we finally feel the pains because now finally Ford NA is on the schedule for change.

Igor

Last edited by igor; 03-03-2006 at 11:38 AM.
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Old 03-03-2006, 11:54 AM   #7
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heres what ford needs to do.......

drop the five-hundred- noone buys them.
drop the fusion- i know ill catch heat for this, but who wants a new taurus? so its got a chrome grille and a v6 in some.... big deal its nothing special.
make every focus svt spec engine wise- i know alot of people that opted for a mazda 3 or somethign else becuase they liked the focus style but lack of power. and if they cant do that than give the option for a 2.3l in a zx3.
keep the mustang - but make the gt look like its a totaly different mustang all together.
fix the explorer- that grille is fugly they had a good thing going with the redesidn in 02 i think it was.
redesign the expedition- its too bland and has no style to it.
keep the f-150
kill the sport-trac- its worthless.
that new suv crossover is worthless also, just buy a focus wagon or an escape.
mercury needs to drop the whole "for old people" look its dead theyre on the same path as oldsmobile.
bring back the marauder- it was a beast and a very goodlooking car.
focus on mazda and volvo becuase most average consumers dont know its ford owned.

and lincoln needs work too but i dont know where to start.


once agian this is my opinion ive been thinking about this for a while and i finally got around to typing it up. you can disagree its fine with me.
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Old 03-03-2006, 12:18 PM   #8
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Every single one of the points is very far off mark...
500 - sells OK ... highly liked, needs bigger engine (D35) and better styling (2008) ... otherwise people love it. Ford needs a full size sedan ... fusion will not attract 40-50 year olds and they are a market too.

Fusion is selling like hotcakes. It has not a single bolt in commong with Taurus. If for you any ford midsize is a new Taurus, then it is sad. Fusion is a hit and so are its siblings. Moreover with AWD option from this summer they will be unique in the midsize market..

Edge is a 27k midsize SUV.. you could say Escape is useless.. because it has about as much space as Focus Wagon... the Edge is built on Fusion platform..
It is also going to be a hit.. it has the right look, the right features.

I agree most probably with Expedition, Exploter etc.. they need work, but IMO not worth the money

Mercury scores ver ywell with young women and non-alpha urban males. It has a sort of european feel in the customers perception ( this is not ford;'s intent, but Customer perception). annd there is a lot work to be done .. Mercury is the make in Ford NA that needs the most attnetion.

Lincoln has Zephyr that is sellign strong. the Mark LT is selling ver ywell too. The MKX is going to do well.. Once they get the MKS they will be dandy.. again NAvigator would need redesign but that is not worth the money..

You need to view Ford in the context of what is offered by the competition.. Ford needs to match all the mainstream offerings and then offer a couple unique models. Ford understands it and they are doing it, and it is working.. Unlike GM that has this perception that all their cars should be RWD and fighting BMW...

BTW Mercuty is working on a RWD 4door sedan based on the Mustang.

Igor
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Old 03-03-2006, 12:36 PM   #9
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As a Ford dealership employee, the prospect of GM filing bankruptcy does scare the crap out of me. If GM were to file and then not be able to recover, it would make Ford and Chrysler both lazy because they would have one less competitor. If that happens, people will not buy Ford products because of the lesser quality due to the complacency and lack of concern. Innovation would also go out the window. If there is less competition, why would Ford need to come out with anything new?
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Old 03-03-2006, 12:44 PM   #10
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Quote:
Originally posted by igor
Fusion is selling like hotcakes. It has not a single bolt in commong with Taurus. If for you any ford midsize is a new Taurus, then it is sad. Fusion is a hit and so are its siblings. Moreover with AWD option from this summer they will be unique in the midsize market..
actually it was stated in motor trend or car and driver or one of those that the fusion is infact the taurus replacement. yes i was wrong in saying it was a new taurus becuase theya re totally different cars but by the same token the new fusion also has a very bland look to it.... they look nice in certain aspects but if it is fords answer to the youth than ford has alot of balls.

once agian man it was just my opinion i never stated that this was the gods honest truth.
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