| This contest is fueled by the following news: |
| | American oldest and most famous Ford motor company had its worst
earnings year in 2006 since the company started making cars 103 years
ago. The losses for 2006 operations for Ford were over $16.4 billion.
Ford analysts said that the further prospects this year do not look
encouraging and the company is expected to make further loses, after
its business restructuring and the poor forecast for Ford car sales in
the North American market. Ford's losses in 2006 exceeded $4380 per
vehicle sold and were even worse that Wall Street analysts had
forecasted. Ford took the biggest hit in it's native North American
auto market where losses totalled to $6.2 billion compared to the
losses of $1.5 billion in 2005. Ford is the auto company that was the
first to create and launch the car assembly line and its brand and
name have long been a synonym for American cars. Yet, the car maker said
it does not expect to make any profits until 2009. Ford motor company blamed fierce
competition with Japanese car makers in American market and sub optimal
auto dealers sales volume strategy. The company also closed 16 car plants and
had to pay compensations to laid off workers, which added to the lack
of profitability. Despite the financial struggles and declined car
sales Ford remains #2 car manufacturer in the world, Ford car dealers losing sales
numbers only to Toyota car dealers. |
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Ford Motor Co. which lost $6 billion on North American operations alone, said it expects to burn up $10 billion in cash to run its business through 2009 and spend another $7 billion to invest in new products. Will they have to go back to the basics by resurrecting the Model T?
