Ford losses a mustang a minute

[Flight_740]

http://articles.moneycentral.msn.com/Investing/Dispatch/FordReportsWorstEverLoss.aspx?GT1=8995

[Nix]

Damn man they are in more trouble than I thought. I still think that Ford and GM will eventually merge someday and become one auto maker. But seriously who knows and how well would that really work.

[Flight_740]

No improvement soon
Ford said it does not expect to see an improvement in the first half of 2007 but did say it expects losses to narrow later in the year. .



How do they project this? if they could, why would they have not done it years ago?

[Nix]

Who knows man, it seems to me like this is just going to continue to go "down hill" for them. It seems like they are already pretty deep in the hole and its only going to get worse. I don't believe there is really a way to project the sales to climb back up in the second half of the year. I have no idea how they could project that idea. The company itself is turning into a disaster.

I do however still love the new design of the Mustang and I'm really suprised that it hasn't made that much of a posative impact on the Ford corporation to kind of give them a little breathing room. This article clearly states that they are in trouble all around the entire company and its hurting them where it hurts most. I really wonder what they plan on doing to help their business?

[Reverend Cooper]

if you show huge losses you pay no taxes or alot less. if they lost that much friggin money they would be out of business

[GTSLOW]

$34,795,000 per day

HOLY SHIAT! So are these numbers really accurate?? I mean thats alot of dam money, you could retire of what they lose in a day. :goof

[Al]

I'm trying to figure out just how Ford can fack up that way.

Their cars are nothing special by any means, so building them should not cost that much.

Is it the union that is doing a fair share of the damage?

[Flight_740]

The union is the problem.

[MSGTGT]

I agree with Sonic Blue...showing a lose has its advantages in big business.

[Flight_740]

I agree with Sonic Blue...showing a lose has its advantages in big business.



I'm sure it does but not nearly enough to offset the loss.

[MSGTGT]

I guess I'm just hopeful they stay alive.

[Prince Valiant]

if you show huge losses you pay no taxes or alot less. if they lost that much friggin money they would be out of business
Probably not...many of these businesses have gross values near if not over a 100 billion dollars.

BUT, because of lossess for so long, or simply owing so much money, companies like GM (net worth may only be 15-25 billion), Ford (same) are worth considerably less than companies like toyota that are worth over 80 billion dollars.

But you can't just "show" a loss when there isn't one...the feds AND the stockholders would be in an uproar. And if the feds didn't proscecute, the shareholders would sue. The losses are legit.

But, you can put off showing losses until particular quarters, or claim the cost of a particular chasis/car/truck in a given year. IE, if ford spent 15 million working two years on a product, they could claim all the loss this year...this would then make it easier to show a profit sooner the next fiscal year. So if with all their recent product development they "paid" for it this year, then expect MUCH better numbers this year.

Plus, if you claim it soon, when the losses diminish or profit is turned, the value of the stock itself goes up dramatically.