Stephen Rees's blog

Ford makes biggest-ever loss in its history | | Guardian Unlimited Business

The cash-strapped Ford motor company has plummeted $12.7bn (£6.4bn) into the red, suffering the worst annual loss in its 103-year history as it struggles to cope with changing car-buying tastes and fierce competition from Japanese rivals.Ford announced today that its annual revenue dropped by 9.5% to $160bn as American buyers shunned its trucks and sports utility vehicles in favour of smaller, more fuel efficient, cars.

Its financial results, which followed a $1.4bn deficit in 2005, eclipsed the Detroit-based company’s previous worst result of a $7.4bn loss in 1992. The figures meant Ford lost more than $34m every day last year.

I have covered similar stories before in this blog, and I make no apology for doing it again. Henry Ford II coined the phrase “mini cars, min profits” – so now Ford needs to have a new catchphrase – “huge trucks, even bigger losses” might do for starters.

How long before we see a change in direction – or shareholders finally pull the plug? Apparently the restructuring plan gives them three years to return to profitability and they ahve mortagaged all their assets.

Has any public transport operation ever lost this kind of money?

BTW I saw a Smart car yesterday with the personalised number plate “BENZ 4 2”