Ford Reports Loss as Sales Slide
The popular car maker Ford has recorded loss in the first quarter of 2009 because there was a massive slump in the car sales. Consumers across the globe are reducing their expensive purchases and hence the buying power has reduced. This has led to the reduction in the number of car sales and hence a loss for Ford.
While the rivals of Ford, General motors and Chrysler are about to face bankruptcy, Ford has managed to face its financial targets. In the previous year, Fort recorded profit of $70mn during the first quarter. Now, the first quarter result for 2009 is a loss of $1.4bn. In the Europe alone, Ford recorded a loss of $550m during the quarterly while the company was making $737m profits in 2008. Revenue of Ford has gone down to $6bn from $10.2bn.
Even though there was a revenue loss for Ford in the last quarter of 2008, the company was able to make profit for the year 2008. To cope up with the loss in the first quarter of 2009 and to increase car sales, Ford has announced reduction in its car prices. Also, the company has plans to reduce its debt obligations by $10.1bn.