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Worst loss at Ford, but no tow needed
29.01.09
Carmaker Ford today posted the worst annual loss in its 105-year history, but insisted it did not need to turn to the US government for funds.
The Detroit-based firm posted a loss of $14.6 billion (£10.2 billion) for 2008 — eclipsing 2006's $12.6 billion — after a worse-than-expected fourth quarter in which losses widened to $5.88 billion from $3.06 billion a year earlier.
“I think it's by far the most volatile period we've ever seen,” said chief financial officer Lewis Booth. “This is unprecedented. We're not seeing any signs of recovery yet.”
However, Ford said it has sufficient cash to fund its turnaround without seeking government loans, sending the shares up. Rival Detroit firms General Motors and Chrysler have both taken federal aid.
Fourth-quarter revenues at Ford plunged by 36% to $29.2 billion as vehicle sales in the US dropped
by 30%.
