A rather frightening story on the reality of the financial strength of the Ford Motor Company…as it pertains to the introduction of the North American International Auto Show in Detroit.
Heres a few pointers.... pick up a few of the more significant quotes coming thru...
Ford's new pickup reaps high margins and remains America's best-selling vehicle, but it faces problems of its own. While it promises to be among the best in its class, the slowdown in residential construction, high fuel prices and new fuel-economy regulations will keep pressure on the ultra-competitive full-size pickup segment this year.
Ford will emphasize the improved fuel-economy of its truck, achieved through weight reduction and better aerodynamics. But the F-150's mileage will still fall well below the 30-plus-miles-per-gallon threshold consumers and government regulations are gravitating toward. Ford has sold more than 800,000 F-150s annually for most of the decade, but last year sold fewer than 700,000.
That's bad news for a company that continues to lose money in its core market. Its stock recently fell to its lowest share price in more than two decades; it closed at $6.06 Friday. Worse, 2008 is forecast to be the worst for U.S. auto sales since 1998. Ford's U.S. market share has plunged below 15% from more than 25% a decade ago. The company lost $12.6 billion in 2006 and is on track to lose money again in 2007, though the losses are expected to be narrower.
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