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Fourth Quarter Ford Losses May Spell Disaster For Automaker
Ford just released its fourth quarter (2008) earnings report and the news is not pretty. The automaker reported a whopping $5. 5 billion loss for the last 3 months of the year, worsening the corporate's already precarious money position.
The automaker says that it has enough reserves, $13. 4 billion, to stay it going while not a federal hand out, at least through the first [*fr1] of the year. Not like General Motors and Chrysler, that recently received funding from the central and are poised to urge a further bail out, Ford should have enough cash available to weather the present crisis.
But, there's one factor that could scuttle Ford's plans in 2009: a worsening economy. January corporate earnings reports can be returning in over the following few weeks, which will show that unemployment has once again climbed whereas client confidence remains dismal. Fewer employees working perpetually suggests that fewer new car buyers, but a drop in client confidence only exacerbates the problem. If the economy continues to slip, Ford could be forced to approach the federal for a hand out.
Ford will have some aces up its sleeves to combat current market problems. Among them are many new models,[link widoczny dla zalogowanych], vehicles that may propel sales even during an economic downturn. Those new models embrace:
An all new Ford Mustang. The long-lasting pony automobile has been in production for forty five consecutive years and enthusiasts are clamoring for the new model. Doubtless, Ford will relish a spike in sales for its profitable Mustang, maybe enough of an increase to slow its losses.
New midsize triplets. Introduced four years ago, the Ford Fusion, Mercury Milan and Lincoln MKZ are the midsize offerings for every of the company's 3 brands. The Fusion has sold significantly well and all 3 are redesigned for the 2010 model year. The new vehicles will persist sale within the Spring and embody a hybrid giving for the Fusion and Milan. Best of all,[link widoczny dla zalogowanych], this hybrid model will get a category leading 41 mpg around town.
New Lincoln crossover. Neglected for years, the Lincoln brand is back. Additionally to the midsize MKZ, the massive MKS has done fairly well for the brand. Beginning late this summer, the MKT crossover will be released, a half dozen/seven passenger vehicle unlike any other. Lincoln now has 3 modern vehicles for its fleet in addition to the dated Navigator sport/utility vehicle and another crossover,[link widoczny dla zalogowanych], the MKX.
Sadly for Ford, outside forces like a dismal economy, may hamper its recovery. If the market worsens, Ford could be forced into chapter 11,[link widoczny dla zalogowanych], a move that could have detrimental effects on the US economy. Jeff Patterson has been writing articles online for nearly 2 years now. Not only does this author specialize in Continuity Disaster Recovery, you can also check out his latest website aboutOral B Toothbrushes Which reviews and lists the bestOral B Brush Heads.Topics related articles：

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