Ford posts record net loss of $12.7 billion in 2006

[PerryChase]

Reports of big losses at the big 3 automakers tend to be precursors to recession.

—————————–
By Tom Krisher
ASSOCIATED PRESS

1:49 p.m. January 25, 2007

DEARBORN, Mich. – Ford Motor Co. lost a staggering $12.7 billion in 2006 – an average of $1,925 for every car and truck it sold.

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.

[PerryChase]

http://www.signonsandiego.com/news/business/20070125-1349-earns-ford.html

[no_such_reality]

Automotive design is a core industry cluster in the expensive Irvine Spectrum office area. I’m wondering how exposed the Ford employees in Irvine are.

The auto industry isn’t as far away as many think in SoCal.

It appears they have a temporary stay of execution, but with cuts that large, things change…

Ford Layoffs

[Cow_tipping]

We are sooooo falling into recession … fast.
BTW … you think ford sales is drying up because the FB’s cant borrow on home equity … or cos contractors dont have a place to go to due to the building falling off ???
Cool.
Cow_tipping.

[blahblahblah]

Ford and GM have it tough for a variety of reasons; they have a lot of debt, big capital investment in US factories in union strongholds like Michigan, high labor cost, high health care costs, big pension liabilities, etc… Still, I’m keeping my fingers crossed for both of those companies. Failure of either one would be really bad for the US; speaking of which, did you guys see the Chevy Volt? I really, really hope they take that to market. That’s a leapfrog technology if ever there was one. It could steal the thunder from some of these hybrids that really don’t offer a significant advantage. TDIs are actually just as efficient (or even more) than most of the hybrids…

[PerryChase]

I think that with the real estate downturn, big trucks and SUVs are definitely out. There’s no “status” in looking like a contractor anymore. My friend has a trailer to pull. He good a killer deal on a used Ford Excursion from a seller who couldn’t afford his payments anymore.

Fords (American cars in general) are crappy cars. Put one next to a Toyota and look at the gaps in between the body panels. If you compare fit and finish, it’s like Walmart leather goods vs. Coach leather, but at the same price.

The Mustang, arguably the only truly inspiring Ford, was designed by an immigrant engineer who understands American car culture better than the good ol’ boys of Dearborn. Renault might end-up buying Ford and Carlos Ghosn will be running the show.

Public Radio story on Ford:
http://marketplace.publicradio.org/shows/2007/01/25/PM200701251.html?refid=0

[PerryChase]

The Chevy Volt in interesting but ugly and years away. Many concept cars don’t make it to market.

The interesting thing is that the Japanese control battery technology. My friend who works at Sanyo says that Ford buys battery from them for their hybrids.

I wouldn’t buy a hybrid now because the battery needs to be replaced every 4 to 5 years at a cost of thousands of dollars.

The best alternative fuel car to get now is the Honda Civic GX (if you can get one). Fuel it at home at equivalent cost of $0.90 per gallon. It runs, drives, and repairs like a gasoline car. The difference is that it uses compressed natural gas. It’s IMHO the best low operating cost commuter car.

http://automobiles.honda.com/models/model_overview.asp?ModelName=Civic+GX

[poorgradstudent]

Maybe it’s because no one wants to buy a Ford?

In the next few years I really expect a major buyout/merger in the auto industry, be it Toyota buying one of the “big three” or a merger between American companies.

[PerryChase]

This is an issue of local interest. Does anyone remember Wingcast, the Qualcomm/Ford venture based in San Diego?

Wingcast was based in Sorrento Mesa and ended up in flames with the CEO indicted for embezzlement and fleeing to Israel in 2003 (if I remember well).

http://www.qualcomm.com/press/releases/2000/press569.html

[gold_dredger_phd]

Ford will go bankrupt during the Greater Depression. I can’t imagine why a successful foreign car company would want to buy an American car company that is loaded with the Marxist Union Bum legacy costs.

Put Ford out of its misery, but it may end up being owned by the government and kept alive like AmTrak.

No entity rewards failure like government.

[Cow_tipping]

I have a 97 ford F150 truck and a 2002 mitsubishi diamante. I would second that body panel fit and finish comment, but beyond that a 97 f-150 completely trounces a 2002 diamante. The f-150 has 2X the miles and I fully expect the diamante to be a mess by the time it gets there. Toyota and nissan were worse than the diamante from me checking them out. Atleast most of the diamante was metal. Trucks have been the main bread and butter of american automakers and they have done an extrordinary job of making some that never say die. Older the better IMHO. Econobox jap cars may trump american but come to papa if you’re talking large vehicles. BTW I tow, haul bikes, haul wood and a lot of misc with the truck. Its otherwise a driveway ornament.
Cool.
Cow_tipping.

[BikeRider]

Every auto has good and bad points. Toyota vehicles seem to have thin metal. Sound like tin to me when I tap the sides. They have nice shapes, but rust out severely. I own a 2001 Ford F250 4×4 with the 7.3L diesel. Extended cab, full bed. This truck is a real work horse. The diesel has lots of towing power. If I want a work truck, I always look at Fords.

[Author]

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