DEARBORN, Michigan: The Ford Motor Company is reeling after reporting third quarter losses of $5.8 billion (€4.42bn; £3.1bn), the biggest such slide in fourteen years.
The ailing US automaker says it will also restate earnings from 2001 through to this year's second quarter to correct the accounting treatment of derivative transactions. New ceo Alan Mulally called the performance "clearly unacceptable".
Third-quarter revenue fell 10% to $36.7bn. US vehicle sales fell 8.3% to 710,000, although the company said the year-earlier quarter was stronger than usual because of a promotion giving customers Ford employee price discounts.
The disappointing figures also reflect the costs associated with a massive restructuring plan which includes employee buy-outs and plant closures [WARC News: 15-Sept-06].
Yet, despite the gloom, Mulally remains outwardly bullish that the company can turn round its fortunes through its own efforts. He told the Detroit Free Press: "We have no plans and do not see the benefit of any alliances at this point."
Analysts, however, have expressed serious concerns about Ford's future, branding the latest figures "distressing" because there is no "product-led revival around the corner to reverse the decline".
Data sourced from Telegraph.co.uk; additional content by WARC staff