Business

Frod turning away from truck production
by Claudia Sonea

The oil price crisis continues to make victims and Ford Motor Co. is on the list. Due to the soaring of oil price in the US the icon of American automaking has registered the worst quarterly loss of his history, losing $8.7 billion on its truck-heavy line from North America.
As it is, on Thursday Ford announced that six small, fuel-efficient cars will be brought from its successful European line to North America, thus switching from truck production to car manufacturing. However, the plans will be finished only in 2010 and they will have to survive by then. Will they succeed?
On the European market it has plenty of success and it had even in America until the crisis of the oil. Chief Financial Officer Don Leclair stated that they have no problems in surviving with $38 billion in cash and credit lines to which they add $26 billion. Also there is always the alternative of job cutting (200 workers were released of contracts through buyouts and early retirements by June 30 and more to come).
The European models due to be built in North America are: the Fiesta subcompact, Ford Focus (Kentucky and Michigan), the Transit Connect small van and three other that Ford refused to make public. Ford CEO Alan Mulally has big expectations now that the U.S. market faces huge gas prices and the interest is on small cars. They only have to look out for that pesky Asia competitors who have taken over the market in the last years.



related story: http://news.yahoo.com/s/ap/20080724/ap_on_bi_ge/ford_s_future;_ylt=Ao8XXyjt7WT0.S1fBa.fx9Gs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 1:54 AM