Summary: More depressing Ford news: Management announced production will be slashed by as much as 12% in the first half of 2007 and 5% for the full year. The production line will be turning out fewer trucks and SUV's, but the elimination of the Taurus will take the biggest chunk out of production numbers. CFO Don Leclair is careful to point out that, "we have a lot of new products coming, products that will be hitting their stride in the third and fourth quarter of next year." These include the Ford Edge and the Lincoln MKX. Third quarter losses reached a staggering $5.80 billion; fourth quarter results are expected to be worse. Analysts expect that the company will have the lowest year-end inventory since 2001, when Ford ran a post-Sept. 11 sale and ended that year with 631,800 units. They currently have 652,000 vehicles. The company expects earnings to start heading north only in the fall of '07, but warns investors they don't expect to see any profits until 2008.
Related links: Detroit Needs To Get Real • Throwing In The Towel On Ford • Ford Bleeds $5.8 Billion in Q3; SUV's, Foreign Competition To Blame • WSJ: Ford To Cut 1H '07 Output 8-12%, Full-Yr '07 5% • Bloomberg: GM, Ford May Say U.S. Sales Rebounded; Chrysler Extends Slide
Potentially impacted stocks: Ford (NYSE:F), General Motors (NYSE:GM), DaimlerChrysler (DCX), Toyota (NYSE:TM), Honda (NYSE:HMC), Nissan (OTCPK:NSANY)
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