Ford continues to haemorrhage money: it posted a loss of 4.5 billion euros in the fourth quarter of last year. But the US carmaker insisted that it does not need the government bailout help that its rivals GM and Chrysler have received.
In 2008 Ford suffered the worst annual performance in its 105 year history. For all of last year it lost the equivalent of 11 billion euros. Over the last three year losses total almost 30 billion euros. After burning through 16 billion euros worth of its capital last year, Ford’s Chief Executive Alan Mulally said they plan to draw down 7.7 billion euros of credit, part of the loans he arranged two years ago before the credit markets froze up. The money was originally intended for restructuring, now it will be used for survival. As part of its latest cost cutting Ford announced it will lay off 1,200 people from its loans division. With sales down, they have no work to do. Americans bought 18 percent fewer vehicles last year and its forecast sales will fall for a fourth consecutive year in 2009.