(autoinsidernews) - Ford Motor Co. today announced a staggering $5.8 billion loss in the fourth quarter amid slumping sales, especially for its high profit full-size trucks and SUVs, and huge restructuring costs for its North American automotive operations. The fourth quarter loss pushed the automaker's loss for the year to $12.7 billion, its largest loss in its 103-year history. In 2005, the company reported net income of $1.4 billion.
We began aggressive actions in 2006 to restructure our automotive business so we can operate profitably at lower volumes with a product mix that better reflects consumer demand for smaller, more fuel-efficient vehicles, said Ford CEO Alan Mulally. We fully recognize our business reality and are dealing with it. We have a plan and are on track to deliver.
While much of the losses is associated to the one-time special charges for buyouts, plant closures and other restructuring costs, the automaker still recorded a $2.8 billion loss on operations for 2006. Ford posted $9.9 billion in special charges in 2006. Ford's revenue for 2006 was down to $160.1 billion from $176.9 billion the year before, largely due to slumping sales of its high price and high profit full-size trucks and Explorer and Expedition SUVs, reports Trend.
Ford expects more losses this year, and expects to lose $10 billion on automotive operations through 2009 and invest another $7 billion in new products.
While challenges lie ahead for us in 2007, we're focused on making continuous improvements to our plan, so we can capitalize on opportunities to create and sell more products and save more costs, Mulally said. Our priorities, combined with our sense of urgency, will continue to transform Ford Motor Company.
How about this for a frightening number, including special charges, Ford lost $4,380 on each car or truck sold in 2006.