Poor U.S. sales of sport utility vehicles and pickup trucks played a key role in Ford Motor Co.’s record $12.7 billion 2006 loss, the company said Thursday (Jan. 25).
UPI reported that the automaker – whose previous worst-year loss was $7.39 billion in 1992 – said it expected to continue its poor financial performance through the first half of this year, with an upturn in the second half.
Ford lost $5.8 billion in the 2006 fourth quarter, the company said. In the same period a year earlier, it lost $74 million.
Ford said declines of 25% in SUV sales and 12% in F-Series pickup trucks in the U.S. contributed to the company’s record loss. The automaker cut North American production 22% as sales plummeted $11.2 billion to $69.4 billion from $80.6 billion in 2005.
The red ink was also a result of shrinking and reorganizing the company, buying out workers and writing down asset values, the company said.
Ford is seen as likely to lose its spot as the No. 2 automaker in the U.S. market by sales to Japanese rival Toyota Motor Corp.