News / Business
Ford Posts $5.8 Billion Loss in Fourth Quarter, Faces Largest Deficit in Company History
Ford Motor Co.’s $5.8 billion loss in the fourth quarter has pushed its deficit for the year to 12.7 billion, far surpassing its previous record of $7.29 billion set in 1992.
Relying heavily on sport utility and truck sales, Ford took a massive hit when gas prices increased to over $3.00 per gallon in the U.S. Many American consumers turned to more fuel-efficient vehicles leading the Dearborn-based Ford into a sales drop.
Speaking about the loss and the course of action that was planned, president and chief executive officer Alan Mulally issued a statement saying “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. We fully recognize our business reality and are dealing with it. We have a plan and are on track to deliver.”
