Ford Reports $3 Billion Quarterly Loss, 25% Of Salaried Workers Get Pink Slips In 2008

Ford Motor Co. today reported a third-quarter loss of $129 million and said it must eliminate more salaried positions and cut other operations to keep its restructuring plan on track as automobile sales continue to decline.

The Dearborn automaker said it will cut 10 percent of its North American salaried payroll -- that's on top of the 15 percent cut in white-collar jobs it announced earlier this year.

Ford, which burned through $7.7 billion in cash, lost 6 cents per share in the third quarter, compared with a loss of 19 cents per share a year ago. That was largely due to a one-time favorable gain of $2 billion stemming from writing off the costs of retiree health care being shifted to a trust to be run by the United Auto Workers. Excluding special items, Ford lost $1.31 a share, worse than Wall Street expected. Analysts surveyed by Thomson Reuters predicted a loss of 94 cents per share.

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350zdon17 - 11/7/2008 9:32:33 AM

+1 Boost

OUCH!!!!

EL34 - 11/7/2008 10:35:34 AM

-1 Boost

Now is the time to buy Japanese or German cars.

Screw Ford, GM and Chrysler.

AMiodynski - 11/7/2008 10:58:21 AM

+1 Boost

It's sad but they have no one to blame but themselves and the crap they built. I'm a Ford Fan of the old stuff, don't like any of the new stuff.

It didn't help when they started the fire with 0% Financing after 9/11. GM, Ford, and Chrysler no have an out of control fire that they can't put out.

Henry Ford is turning in his grave right now shaking his head on how they have ruined the company !

mercuryguy - 11/7/2008 11:49:10 AM

+1 Boost

Win Win Rescue:
The US Government needs to re-enact the interest tax-deductions for auto-loans. Additionally the government needs to allow people to deduct the cost of their new American car purchase from Federal Income Tax, similar to the tax breaks business owners get for their cars. Depreciation of the auto every year would also help.

Everyone wins in this model, Detroit, Working People, everybody.

Japan has government healthcare for all. America simply cannot compete with such a model. The US Government needs to put national healthcare in place to relive the healthcare burden to the US Auto industry.

Pension cost are killing Detroit as well, so the US government should instead Tipple the allowable limit for IRA contributions so people can fund their own retirements to supplement Social Security. Adjustments for inflation to Social Security will also need to be done.

Bailouts won’t work. Yes it worked for Chrysler in 1980, but we didn’t have a Healthcare, Energy, Bankruptcy, Mortgage and Trade crisis at that time. The only elements that were similar was the high unemployment coupled with an energy crisis, but people were in their homes and solvent. Things are far different today.

JWalkerLegrande - 11/7/2008 4:41:35 PM

+1 Boost

"Japan has government healthcare for all."

Which means that the peopée all pay higher taxes to provide healthcare to those who, under US circumstances would opt not to buy a policy. Do you really want to pay more taxes to cover workers of doomed companies ?

mercuryguy - 11/9/2008 12:17:10 PM

+1 Boost

No I don't, but Japan's people do, which is why they are beating us. Japan's people care about thier fellow citizens, thier neighbors. They unite to out-compete everyone.

In the US we seek to find cheaper labor, to elliminate jobs, and erode or economy and way of life.

Lets face it, we are no longer a self-sufficient nation. We don't make things anymore. You can't build Armies if you no longer manufacture anything.