Ford Loses $8.7 Billion in 2nd Quarter
July 24th, 2008 | 
Author: Ford Motor Co. announced plans to transform its vehicle lineup and reported a massive second-quarter loss Thursday.
Ford (F, Fortune 500) stock fell about 8% in early trading.
“Because of deteriorating economic conditions, demand has declined dramatically, especially in North America,” said Ford CEO Alan Mulally, who also blamed rising gas prices for the decline.
Ford said that three large truck and sport utility vehicle plants in Wayne, Mich., Louisville, Ky., and Cuautitlan, Mexico would be switched over for the manufacture of small cars. Re-tooling will begin in December, the company said.
In addition to converting the three plants in North America, Ford said it will ramp up production of small utility vehicles at its Kansas City, Mo., assembly plant, including the Ford Escape, Escape Hybrid, Mercury Mariner and Mariner Hybrid.
Ford has been offering buyouts to the hourly employees among its 54,000-strong workforce. But only 4,200 workers accepted, far short of the company’s goal. On Monday, Ford said that a new round of buyout and early retirement offers had been made to workers at 17 facilities.
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