Anybody else watch the news? Ford losing billions

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Originally Posted by Mr 5 0

I certainly will keep thinking that Ford is in serious financial trouble. Just as those who care to investigate the situation already realize. Look, this is hardly worth the argument so if you choose to believe the 'it's all hype' excuse the company apparently hands out when it's sales drop by 20%, its market share shrinks while it's stock struggles to stay near $8, that's certainly your prerogative. Besides, I don't own any Ford stock. Apparently a wise choice. I'm just saying.

The drop in 2006 sales volume at Ford cost it $3.3 billion (compared to 2005) and lower pricing on the vehicles it did sell cost another $1.9 billion. Do the math. That's a huge loss of revenue. I don't care what the company is telling you (or what Ford employees tell each other), if it continues, it will be, in effect, a financial death spiral. Besides, Toyota - a foreign car company that basically 'came out of nowhere' (Japan, actually) - has already displaced Ford - with all it's history and (mistakenly assumed) owner loyalty as the #2 selling car in the U.S. That is telling, to say the least. The days of U.S. car buyers having loyalty to U.S. cars is long past, I can assure you. Sales figures now prove that contention. That isn't 'hype', it's reality.


I'm in the insurance business, as if that has any bearing on anything.

I'm also a realist who doesn't depend on Ford for my living so I have the ostensible luxury of objectivity here.

OK lets discuss this again in 5 years and see whos right. deal