Ford Reports $8.7 Billion Loss in Second Quarter
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DEARBORN, Mich. — Ford Motor Co. said today it lost $8.67 billion in the second quarter largely because of a reduction in the value of assets.
The company also announced that it will bring six European small car models to North America by the end of 2012 as it deals with a market shift from trucks to cars brought on by high gasoline prices. The company also will retool two more American truck and sport utility vehicle plants to build small, fuel-efficient vehicles.
The second-quarter loss was $3.88 per share, compared with net profit of $750 million, or 31 cents per share, in the same quarter a year ago.
The loss includes $8 billion worth of write-offs because of a decline in value of North American assets and Ford Motor Credit Co.’s lease portfolio.
Ford’s second-quarter revenue was $38.6 billion, down $5.6 billion from the year-ago period.
Ford said it will retool the Michigan Truck plant in suburban Detroit, shifting its products from large SUVs to make global vehicles off the European Focus platform by 2010.
The SUVs made at Michigan Truck — the Lincoln Navigator and Ford Expedition — will be shifted to the Kentucky Truck plant in Louisville.
The company also will retool the Louisville Assembly Plant, which now builds the Ford Explorer midsize SUV, to produce vehicles on the European Focus frame, starting in 2011.
Ford also said its Twin Cities Assembly Plant in St. Paul, Minn., will continue producing the Ranger small pickup through 2011. The plant was scheduled to close next year.
