After $Billion Q2 Loss Ford Employees Brace for Further Cutbacks - So Is This A Surprise?

Washington DC July 20, 2005; The AIADA newsletter reported that after a promising June, Ford Motor Co. on Tuesday reported second quarter losses nearing $1 billion dollars and announced plans to continue with further cost-cutting measures in order to deal with overcapacity at its manufacturing facilities, reports The Detroit News.

In total, Ford earned just $946 million during the second quarter of 2005, a decline of 19 percent from the previous year. Ford continues to battle losses in the crucial North American market. For the second quarter, the automaker’s North American operations alone lost $907 million before taxes compared to a profit of $476 million during the same period last year.

During a conference call yesterday, Ford CFO Don Leclair hinted at plans for further cuts at the automaker’s manufacturing facilities, which may likely include more plant closures and possible job cuts. "We realize we have excess capacity, and we will update you on our plans on that area later this year,” Leclair said. “As we said in April, nothing is off the table." Leclair said that Ford is looking to unveil “some great” products this fall, which the company hopes will stir up renewed consumer interest.