(autoinsidernews) - After posting a $5.8 billion loss in the third-quarter, Ford admitted that significant losses will continue well into 2007. Ford reported the loss on Monday after it took a series of special charges to restructure and downsize its core operations. And Ford may have not hit bottom yet. Sales are plunging and the losses are burning through billions of dollars in cash.
I would sure characterize it as a critical time, said Alan Mulally, Ford's new CEO. It absolutely demands decisive action and a clear focus.
Not surprisingly, analysts were disappointed with the results, which included a $2 billion loss from its North American auto operations. And Chief Financial Officer Don Leclair said Ford expects even deeper fourth-quarter losses from its North American operations, reports Trend.
While the special charges were the reason for most of the loss, industry analysts are concerned by the losses from Ford's auto operations. In addition to the North American losses, Ford's Premier Automotive Group, which includes Jaguar, Volvo, Land Rover and Aston Martin, lost a record $593 million in the quarter.
Mulally summed it up when he said, Time is of the essence.
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