Ford Will Offer Additional Buy-Outs

Jan. 24, 2008
4th quarter loss was $2.8 billion

While announcing 4th quater results and looking ahead to this year, Ford Motor Co. CEO Alan Mullaly said, "Although our Automotive operations are improving on a year-over-year basis, the U.S. economy is slowing and the outlook for the auto industry remains challenging. To help ensure we are able to deliver our commitments despite the difficult external environment, we will be taking further cost reduction actions in North America, including enterprise-wide UAW buyouts. In addition, we will continue to accelerate the flow of new products, reduce vehicle complexity, and adjust production to the changing business environment."

For the fourth quarter the company had a net loss of of $2.8 billion compared to a net loss of $5.6 billion in the same period a year ago. Revenue was up $40.3 billion from lat year. The increase reflected changes in currency exchange rates, higher net pricing, and improved volume, according to a company statement.

Looking at the the full year of 2007, Ford reported a net loss $2.7 billion. This compares with a 2006 full-year net loss of $12.6 billion. Ford's 2007 revenue, excluding special items, was $173.9 billion, up from $160.1 billion a year ago.

"Each of our Automotive operations is improving, and we are encouraged by the progress, which validates our strategy and plan," said Mulally. "In 2007, we introduced great new products around the globe that received strong third-party endorsements for styling, quality and safety. This year, we have some outstanding new product introductions including the Ford Flex, Lincoln MKS, and Ford F-150 in North America, and Ford Kuga and the production version of the Ford Verve concept in Europe."

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