Ford’s losses not so bad

Alisa Roth Nov 8, 2007


Scott Jagow: Ford turned in its third-quarter numbers this morning. Wall Street’s reaction: “Oh, you didn’t stink as bad as I thought you would.” Ford lost money, but not as much as the analysts predicted. More now from Alisa Roth.

Alisa Roth: Ford’s still not selling enough cars. But with buyouts and other parts of its restructuring plan, the company’s managed to cut its losses.

Consultant Alan Baum says that for now, that’s enough.

Alan Baum: They’re kind of treading water right now with respect to their retail. But from the financial perspective, this is a positive result.

Of course, if it’s going to survive, Ford’s eventually going to have to start selling more cars. But Baum thinks several new models are helping the company do just that, and shake off some its negative brand image.

But Baum says all of the Big Three could be in for a nasty surprise:

Baum: The big kahuna waiting at the door is an economic downturn. And the American companies are particularly susceptible to that, because they really don’t have a margin for error.

And Ford could be particularly vulnerable — it’s in the worst shape of the three.

In New York, I’m Alisa Roth for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.