Ford reported a loss of 11,000 million euros. Although the company experienced more than five losses in 2008, amounting to 11,000 million, Ford claims to have sufficient liquidity to not resort to public assistance. It has enough funds to achieve its business plan and pour investments into new products.
The U.S. multinational recorded a turnover of 146,300 million dollars (110,833 million euros) last year, representing a decrease of 15.1 percent compared to the turnover of the previous financial year. Also, the company’s global sales reached 5.4 million units last year, representing a decrease of 17.5 percent. The corporation ended 2008 with a total liquidity of $24,000 million (18,181 million euros). Thus, it feels it does not need a bridging loan from the U.S. Government.
The multinational said that 2008 showed a savings of $4,400 million (3,300 million euros) in its automotive division. While in the fourth quarter, costs decreased by 1,400 million U.S. dollars (1,060 million euros). The company made the decisive action needed to reduce production and to adapt to lower global demand, in order to reduce costs. It hopes to significantly reduce its ‘cash flow’ negative operating in 2009.
For all of 2009, the company anticipates that the global car market will fall by 10 percent, but noted that public policies adopted in different markets could improve the volume of registrations at the end of the year.
Via BBC
