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Ford Slashes Losses by 7.2 Billion
Written by: Autocar staff   http://www.autocar.co.uk
01/24/2008 - 07:00 PM
Dearborn, Mich.
 
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Ford slashed its global losses last year from $9.9 billion in 2006 to $2.7bi. The company said all of its automotive operations were profitable, with the exception of North America.

However, North America did substantially reduce its red ink from last year's $6bi loss.

Ford's Premier Automotive Group,¬ made up of Volvo, Jaguar and Land Rover, made a profit of $500mi compared to a loss of $350mi in 2006.

Although Ford doesn't break down the performance of the individual brands, it's thought Land Rover - one of the companies Ford is selling - provided the good news.

Sources suggest that the 4x4 maker could have made nearly a $1bi profit in 2007. Jaguar was thought have a made a small loss, however.

Perhaps the biggest
surprise was Volvo, which, despite selling over 400,000 relatively upmarket cars, managed to crash into the red in 2007.

Around the rest of the world in 2007, Ford of Europe made $1bi, Ford South America made $1.2bi and Asia Pacific and Africa made just $40mi.

However, Ford's projection for 2008 suggest it will overall still be in the red, despite reducing costs by about $3bi - including more job losses - and spending $6bi on product development.

The crucial North American market is expected to be hit by the turbulence in the American economy, with new car sales falling to 16 million units.

2007 U.S. sales dropped almost 3 percent to 16.14 million vehicles, the lowest since 1998.

Hilton Holloway/Autocar magazine.
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