AFSCME 3357-HOF'S BLOG

Ford: Bad News all over the Place

Ford managed most of the year to keep itself out of the news while GM took all the bad headlines. Now bad news is piling in from all angles. First, Ford not only issued a quarterly loss report, it then revised the statement and doubled the loss. Secondly, Ford recalled over a million vehicles for cruise control problems. Next, Toyota took the #2 sales slot away from Ford. Finally, General Motors announced its redesigned full-sized pickup trucks. Ford's F-150 pickup is its #1 seller (actually the industry's #1 seller), but sales of pickups are down about 36% industry-wide this year. If Ford loses market share to GM and to Toyota (redesigned Tacoma due early 2007), Ford could be in a world of hurt. Thetruthaboutcars.com today came out with a Ford Deathwatch article to go along with the long-running GM Deathwatch series.

There is a bit of good news, Toyota reported higher profits for the quarter, $4.3 billion in operating income. Toyota now has a market value of three times the combined value of GM, Ford, and DaimlerChrysler. I said it was good news, I didn't say for whom.

I want to add a personal note to all this. Yesterday, I was at the Indianapolis Ford (make that Visteon, no make that Automotive Components Holdings, LLC) plant for their annual "Health Fair". The snacks were delicious. They included corndogs, mini-corndogs, White Castle hamburgers, big cookies, and movie-theater popcorn. These healthful treats no doubt lowered Ford's medical expenses enough to ensure profits this year, next year and beyond.