Posted tagged ‘Jaguar’

Ford Motor Company Considers Selling Volvo

December 1, 2008

Ford Motor Company is considering selling Volvo Car Corp. as the struggling U.S. automaker seeks to raise cash and weather a global automotive sales crisis.

From the Associated Press:

Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called “severe economic instability worldwide.”

“Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our One Ford plan,” said company president and CEO Alan Mulally in written statement, referring to a plan the standardize the company globally.

Ford officials would not speculate on how a potential sale would affect the companies. Spinning off Volvo into a separate may be a possibility, as both companies have already taken steps to allow Volvo to operate on a more standalone basis. That effort began in 2007, after a previous strategic review of Volvo.

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Ford Motor Company Reports Huge Losses…Will Cut Jobs

November 7, 2008

The Ford Motor Company reported a $3 billion quarterly operating loss this morning and said it would reduce its staff and capital spending in order to preserve its dwindling cash.

From CNN Money:

Ford said it would cut salaried employment costs by 10% – reducing compensation of its white collar workers by eliminating merit pay, bonuses and the company’s matching contributions to their retirement accounts.

But even with those savings, the company said it’s likely to lay off more salaried staffers. It also said hourly staff – mostly factory workers covered by union contracts – would be reduced by an additional 2,600 through a voluntary buyout package.

The company, which earlier this year sold brands such as Jaguar and Land Rover, said it would continue to look to sell assets.

Ford Chief Executive Alan Mulally warned that while the company is confident that it is taking the right steps to respond to the downturn, it does not see a quick turnaround in demand for autos in either North America or Europe.

“We believe the downturn in industry volume will be broader, deeper and longer than previously expected,” he said during a conference call. Sales volume isn’t expected to improve until 2010, he said.

Ford’s loss came to $1.31 a share, excluding special items, far worse than the penny a share loss it reported on that basis a year earlier. Analysts surveyed by earnings tracker Thomson Reuters had forecast a loss of 93 cents a share.

The company had a one-time gain of $2.2 billion, related to the accounting of its retiree health care expenses. With that gain, it reported a net loss of $129 million, or 6 cents a share, an improvement from the $380 million, or 19 cents a share, it lost on that basis a year earlier.