On slightly higher revenue, and with cost-cutting moves well underway, Ford Motor Co. posted a much smaller loss in Q1 of 2007 than for the same period in 2006. This year's net loss was a still-substantial $282 million, but compared with a loss of $1.4 billion last year, it seems like a drop in the bucket.

Besides the turnaround plan that is going to result in 16 plant closures and 45,000 job cuts (18,000 pink slips issued already), Ford said better results from its European and luxury vehicle operations helped improve the overall numbers. Ford of Europe had a pretax profit of $219 million, while the Premier Automotive Group had a record pretax profit of $402 million, partly due to the sale of Aston Martin. It also appears that Q2 might be better than expected, as Ford has raised their sales forecast 5 percent to 810,000 vehicles.

Even with some cause for optimism, CEO Alan Mulally was still cautious when discussing Ford's future. "Our first-quarter results came in somewhat stronger than expected, but there are many uncertainties going forward," Mulally said in a statement. After posting a record loss of $12.7 billion last year, many expect the company to stay in the red until at least 2009.

High points for Q1 included first-quarter revenue of $43 billion, up from $40.8 billion in 2006. Global auto revenue saw a similar gain from $37 billion to $38.6 billion. But lower demand for highly-profitable SUVs and pickups has caused some concern. U.S. sales were down 13 percent, with F-series pickup sales down 14 percent. Overall U.S market share dropped from to 17.2 percent a year ago, to just 15.1 percent this year. But Ford is still less than half way ($1.9 billion) towards their stated goal to cut $5 billion in recurring costs.


Ford's Q1 loss better than expected - Autoblog

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While reading a bit on this, it is interesting to note that many of the divisions outside of the USA are doing a lot better than the American divisions. The American Ford is realizing the biggest losses while many of the divisions abroad are actually profitable. While they have announced that there will be 16 plant closures and 45,000 job cuts they are actually building new plants in other countries. For example in China they just opened a new plant with 3 factories and another one is in the works.

Does Ford really need to move their production outside of the US to be more profitable? Or is it just that what they are producing in the US is not selling as well as their vehicles produced in other countries? I guess us as the consumers never really know the real truths behind how these large corporations operate.

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the sharpest tool in the shed
1989 Mustang 5.0 GT (25th Anniversary Edition)
~hobby car~

Interesting observations. Ford is so massive and has so many things going on its hard to figure out.

I hope someday soon Ford will be celebrating profits. Rather than getting excited when the loss is only 282 million

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I have been watching the big 2 automakers the last couple of years, and watching Toyota pass them by.

This is just my opinion, but if Chevy and Ford were to merge, they would actually stand a chance of not going bankrupt.

If they continue on the average path they have been takining, they will be ripe for takeover by some foreign company and there wont be many/any US manufacturers anymore.

Interesting points. I agree they have been on an avg path for a long time. The Ford Edge looks pretty good. So does the Mustang, F150, and Fusion.

I just can't see a Ford Chevy merger ever happening

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The only reason I would suggest a merger between the two is for defense against being taken over and becoming a non-American company like Chrysler.

Now Chrysler is up for sale again, and Chevy came close to a takeover attempt by Nissan last year.

Together they may have a chance, divided, they may fall.