< Return to Bulls page

Lots of room to cut costs

New CEO Alan Mulally has already observed several inefficiencies in Ford's operations. Ford could save over $15 billion if it could duplicate GM's fixed cost per unit of $6,060 compared to $8,400. He has aggressively cut costs by $1.7 billion, including $1.2 billion in North America.

All totaled, Ford has cut 46,300 jobs in North America in the past two years, Reuters reported. And last year, it negotiated a new contract the United Auto Workers union. The company could make even more progress in the second quarter, because it won’t have to worry about a one-time $416 million charge that reflected money Ford spent just to reduce expenses. Also the company expects to close its $2.3 billion sale of the Jaguar and Land Rover brands to Tata Motors in the next three months.

Ford Motor Co. (F) said in March 2009 that it has reduced its automotive debt by $9.9 billion, or 38%. The debt reduction will trim more than $500 million from the carmaker’s annual cash interest expense, Reuters reported.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.