Ford’s Operating Loss at $3 Billion
Filed under: Autos | By: Peter Chubb
Posted on: November 7, 2008 | 1 Comment
It is no secret that the Ford Motor Co. is in a spot of financial difficulty, the auto giants latest quarter figures are in and they have an operating loss of $3 billion. Ford has since announced that they will have to reduce staff and spending, in an effort to preserve what cash they have left.
Ford have said that they will now cut salaried employment costs by 10%, Ford will also reduce the compensation of its white collar workers, they will do this by eliminating bonuses, merit pay, as well as their retirement accounts.
Ford have been doing all they can to stump up some extra cash, they have sold some of their brands, like Jaguar and Land Rover, and are also looking to off-load part of Mazda. There is a general concern that some of America’s largest automakers, such as Ford And General Motors could run out of cash in 2009, if this happens it could plunge the U.S. economy in to further turmoil.
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If the government wants to bail out GM, let’s get double our money by requiring the company to produce only hybrid and electric vehicles going forward. That way our taxpayer investment at least goes towards developing technologies to move us towards energy independence.
-jmanley