Ford

[poggy]

We were talking about the losses made by Ford last year and I can't believe it's true but it works out that this is equivalent to almost giving every person on the planet $2 each (approx £1).

I cannot understand that any company can afford to make these losses and keep going. It also seems that the US was responsible for the loss and not the European division.

 

[french bean]

Probably because it would take the economy down if Ford went

 

[poggy]

I just can't believe that had that sort of money available to cover the losses. They must have a big overdraft facility.

 

[jug]

they've make huge losses in the past. remember back in 92 when they took the american record for annual losses ($7.4bn), and then the next day general motors reported $23bn losses for the same period and everyone predicted either or both could go bust. yet they didnt. if anything they didnt even notice the losses. little changed.

so the recent $12.7bn losses are still only half the losses GM made back in 92. no big deal. they'll close a few plants, sack a few thousand people, reduce costs and spending, and no one will even remember it in 4 years time. its not a lot of money in the big scheme of things.

 

[Valeen]

yeah but ford are also putting pressure on the dealers over here to get the sales figure up as were noticing the pinch here

 

[faster4_tec]

its not that ford are doing a bad job, if anything their products are more than adequate and their dealer networks in the UK (at least) are pretty good/ better than a lot of the competition.


the problem IS the competition, and what they are now kicking out, which is cars that are more than capable of fullfilling the mondeo's company car role, or the fiesta's small hatch roll, or the focus's general generalness (if thats a word).

think back to 1995 thru 1999.
can youremember just HOW many vectra's and mondeo's were on the streets. yeah, thousands, every 4th car was a vectra or a mondeo.
and 10years before that when the sierra was king, it WAS king, and even more of that percentage was ford's and vaux's.

but NOW there are A LOT of alternatives, and the car buying public ARE seeking them.
on your way back from work today, count how many vectra's you see. I bet in 10miles you'll see less than 10. 10years ago, you would have given up counting at 50.

the market's changed, and ford are gonna have to gear for it. I.e sell some plants, downstage production, focus themselves and generally downsize

 

[Valeen]

yeah not many new smaller cars due out anytime soon, they just launch the s-max and redone the galaxy and the new foucs CC isnt anything to shout about and very shortly the new mondo will be released so they not going to make a big impact as these are still based on whats already aviable. will see if anything new comes out to help shore up the smaller car market which seems looking at the cars that are mainly on the roads these days is the way to go

 

[ChristieCruiser]

i did a case study a few years abck and ford have been saving sice they rolled the first car of the Pline, so with inflation they still have zillions saved i should imagine.

 

[faster4_tec]

they just take more money from investors and dig into their reserves (bezillions is proberly about right), they also have an untold figure of assets to dispose of.

 

[kev1]

the problem with ford is its american operation. ford europe generally now does all right because it sells decent products as well as offering more niche models (cmax,etc)

however have you seen the american offering? if you don't like pickups or gigantic 4x4s you're screwed!! and as fuel prices in the states are on the increase this will hurt what ford thought were its safe products.

 

[Jai]

They must have a big overdraft facility.

when you owe your bank £1000, you're at the mercy of the manager
when you owe your bank £3 billion, they are at yours........

they just take more money from investors and dig into their reserves (bezillions is proberly about right), they also have an untold figure of assets to dispose of.

dozens of factories, many of which will feel the axe either shutting down for good, or having its workforce culled, added to which those left have reduced benefits, and the possiblity of a serious pensions gap in the future.....

 

[The Negotiator]

when you owe your bank £1000, you're at the mercy of the manager
when you owe your bank £3 billion, they are at yours........

I like that!

 

[T14086]

And they got stung when they brought over 'kwik-fit'

 

[poggy]

when you owe your bank £1000, you're at the mercy of the manager
when you owe your bank £3 billion, they are at yours........

On all the MBA courses I went on (to be fair I was asleep for a lot of them), they never mentioned that, but it's probably the best bit of business strategy I have heard.

You should be on dragons den.

 

[faster4_tec]

how do you know he's not


TBH £3bn the national bank/national stockmarket is gonna go horribly wrong if something that large went down