Fords $100-million profit turns to $8.7-billion shortfall
Filed under: Autos, Business | By: Peter Chubb
Posted on: July 25, 2008 | No Comments
Ford are reporting an $8.7-billion shortfall, making it their largest quarterly loss ever. This is the result of falling sales of trucks and SUV’s, as more people look to purchase more fuel-efficient cars.
Just three months ago, Ford Motor Co. had reported a first-quarter profit of $100 million, it seems that reality has now come back to bite Ford. The automaker has also blamed this $8.7-billion shortfall in the soaring gasoline prices.
Chief Executive Alan Mulally, has said that Ford will aggressively move toward producing smaller, more fuel-efficient cars. Mulally also added that Ford will have to reduce their costs as well as cutting their workforce. In the first since months of 2008, Ford sold 1.11 million cars; this is down by 14% on the same period last year.
Alan Mulally has said “We continue to take decisive action in response to the rapidly changing business environment,” he said. “The second half will continue to be challenging, but we have absolutely the right plan to . . . begin to grow again for the long term.”
For a full report on this, visit: ABC News
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