Ford reports 14.6b Dollars net loss in 2008

Posted on Friday, 30 January 2009 , 13:01:21 byEmil

Filed under ford2008lossmoneygmchryslerllcFordChryslerGM

Ford reports 14.6b Dollars net loss in 2008

Despite a 14.6 billion Dollars net loss previous year, the Ford Motor Company states it`s not planning now seek federal aid at the moment, unlike crosstown competitors Chrysler LLC and General Motors. As analysts sad, Ford reported also a 5.9 billion Dollars loss during the 4th quarter of this year - and the carmaker affirms it used 5.5 billion Dollars in cash during the hard final quarter last year.

So, the challenging 4th quarter leaves the firm with 13.4 billion Dollars in gross cash, for the total of 24 billion Dollars in liquidity, though Ford executives and independent analysts are still optimistic. 'Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results' said Alan Mulally the Ford CEO. 'We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds'.

'We believe Ford will benefit from any union concessions' said Eric Selle analyst of JPMorgan in a Detroit News interview. 'We also expect Ford to post better results over the next 6 months than GM due to its flat North American sequential production. Further, Ford’s operating model involves fewer brands, dealers and plants, thus should be easier to restructure'.