Ford announced a strategic reevaluation of its Volvo branch, a possibility of which including its potential sale.
On November 24, 2008 the Wall Street Jounal reports Ford is contemplating selling 5 of its corporate jets to generate extra cash.
For Q3 2008, Ford had a net loss of $129 million, which totaled $2.7 billion of when special items were excluded. Yet the number everyone is watching is the company's cash, which declined to $18.9 billion from $26.6 billion at the end of Q2. Ford continues to lobby hard for a US Government bailout to sustain its restructuring before this cash runs out. Despite these bleak results, the company is still online to cut $10 billion in structural costs by 2009, quality has improved to statistical parity with Honda and Toyota, and inventories continued to be reduced.
In the 2008 United States budget, Ford, GM, and Chrysler were given the option of seeking upto $25 billion in loans from the Federal Government at lower than market interest rates. However, the clause stipulates that all three companies can only use this money in order to develop new technologies or retool factories, for the more fuel efficient cars they need to make to become profitable again, but not to cover day to day operating expenses.[1] Congress approved the loan package in September of 2008; but the Big Three said they will mutually seek upto another $25 billion in Federal loan guarantees.
For August Ford reported sales 26.6% lower than August 2007. Car sales were down 9% while truck sales fell 53%, rental fleet sales fell about 20%. Despite this Ford managed to reduce inventories by 37,000 to 416,000.[1] Fords competitors reported similar results: GM's sales fell 20.4%, Chrysler's fell 34%, Toyota's fell 9.4%, and Honda's dropped 7.3% [1]
Ford's US sales in September fell 34%, while total US car sales fell 27% from Sept. 2007. Despite this, truck sales actually improved over Sept. 2007, as Ford's more generous incentives for its trucks/SUVs and lower fuel prices encouraged consumers back to larger vehicles. For the same period, Ford lowered incentives offered on smaller vehicles.
In March 2008 Ford Motor Co. agreed to sell its Jaguar and Land Rover luxury brands to Tata Motors Ltd. of India for about $2.3 billion. Under the agreement, Ford will continue to supply Jaguar and Land Rover with powertrains, stampings and other vehicle components along with various environmental and platform technologies. The supply agreements will last for the at least the next three years and could extend for two to four years beyond that. Ford also will provide Tata Motors, a subsidiary of conglomerate Tata Group, with other services, such as research and development and accounting. In addition, Ford will provide financing for dealers from its lending arm, Ford Motor Credit, for as much as a year. Ford originally paid $2.5 billion for Jaguar in 1989 and purchased Land Rover for $2.75 billion in 2000.
The legislation passed today increases the federal standard auto makers must meet to an industry wide 35 mpg for passengers cars, SUVs and small trucks. The standard for cars today is 27.5 mpg and for trucks and SUVs 22.2 mpg. The bill also ramps up production of ethanol use to 36 billion gallons a year by 2022, up from 6 billion gallons of ethanol produced in 2007. This will put significant pressure on Ford's gas guzzlers.
Ford announced it is recalling 1.2 million trucks, sport-utility vehicles and vans to fix an engine sensor that could lead to engine stalling. The recalled vehicles are all from the 1997-2003 model years with 7.3 liter diesel engines, including the Ford E-Series van, Excursion full-size SUV, and F-450 Super Duty and F-550 Super Duty trucks.
The falling US dollar makes US cars less expensive when compared to their foreign rivals, a much needed shot in the arm for the US auto industry.
Ford's Juy Auto Sales are down 19% from te same period a year ago.
Ford's Jue sales decline from previous year
Ford Announces desire to sell Landrover and Jaguar brands as pat of its continued restructuring
Ford is ordered to pay USD 80 million to Navistar, an engine supplier for Ford's commercial trucks. Ford had sued Navistar earlier for warranty and quality issues. Ford also reveals that its new restructuring of Ford Credit will cost USD 300 million.
Ford announces that it will build a USD 277 million car plant in Poland to produce Ford Ka compact models for the European market.
Ford enters into an agreement to receive a seven-year term loan facility and a five-year revolving credit facility totaling over $18 billion, over $11 billion of which was available December 31, 2006.
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