The recently announced Ford losses for 2006 are equal to the loss (or free giveaway) of a new Mustang convertible (msrp $24,900) per minute!

I wonder what this tells us about Ford health 5 years from now with regard to new designs, etc?

 

Well the media generally hates America so of course this will be big news, but this was known already that Ford will look terrible on paper while they revamp the company. Cutting production, closing plants, layoffs, buying out retirement funds, ect are all on the menu cutting the fat. It is not all of a sudden going to translate into profit. Buying out all the retirement fund is going to show as a huge hit. Same as if we fixed Social Security immediately the budget would look awfull instead of 'cheating' it year after year while the problem continues to fester. They are trying to do all of this as quickly as possible so the numbers can be adjusted accurately for the upcoming changes, instead of constantly showing a loss quarter after quarter. Ford knew none of this would look pretty and really doesn't care how it apppears in the media. It is what it is. Ford still has more new platforms, engines, and products in the works then any other maker by a long shot.

I think the sponge Katie Couric makes about the same income as Ford is 'loosing'..

 

Ford's actual operating loss was $2.8B.

The rest of the amount was from the one time items that Kevin listed.

 

And I read that they have around $46 billion in the bank.

 

Unfortunately that is old news, that money has already bleed away over the last 5 years.

Ford just morgaged the entire company, including the Ford name and logo to borrow $26B to finance it's latest turn around.

 

You know I have complaints we all do about this or that (actually if Ford would just issue a TSB for the leaking concern I would be 100% cool again) I am really just sick and tired of the media portraying any American car company as crap or insist on throwing dirt on the grave they helped dig, I have said this before but import companies like Toyota could be using children for labor and not only would it be ignored for 3 weeks but when it did come out it would be labeled as a small over sight to their glory (yes I know thats WAY over exagerated). OK rant off.

 

No, it's not old news. I quoted that from a Detroit News article dated January 25, 2007. The article stated that Ford ended 2006 with $46 billion in the bank. Try doing some research next time.

 

It's a matter of semantics.

At one time Ford had >$30B cash reserve, real money not loans.

The $46B you're referring to is not Ford's money, it's their creditors $$. I call that debt, not cash. Do we know if there are escape clauses where the creditors can call their loans if Ford's latest recovery play goes astray?

 

Few more years like 2006 and that $46 billion will be gone.

 

Again, your facts aren't quite up to par. The loans that Ford took out only totaled $18 billion. That leaves $28 billion of Ford's money. Certainly they need the loans to continue the restructuring but you state that all that money is debt when it isn't.

 

No doubt about that. I think Mulally is doing everything he can to turn the company around. Hopefully the money won't run out before they turn the corner.

 

Yeah, I would hate to see Ford end up like AMC back in '86.

 

Over 10 of the 14b was from buying out retirement funds. They wont do that year after year. The only reason it is a 'record loss' was the buyout.