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Ford Motor Corp Sees Quarterly Losses of $254 Million

Ford Motor Co.`s second-quarter 2006 losses have reportedly ballooned to $254 million, almost double from what the American car maker previously estimated and reported it was aiming to see. The losses are attributed to higher-than-expected pension costs, as well as a luxury car division that has not proved very profitable over the past quarter. Ford had previously expected its Premier Auto Group, which includes its Jaguar, Volvo, Aston Martin and Land Rover brands, to post a 2006 pre-tax profit. Yes, a profit.

In documents filed with the Securities and Exchange Commission (SEC) this past Wednesday evening, Ford Motor Corp had said it revised its loss to $254 million, or 14 cents per share, from the previously announced loss of $123 million, or 7 cents per share. On that same day, a major U.S. financial journal reported that Ford has started a review of poorly performing units, including Jaguar, and is learning toward the possible sale of some operations.

However, Ford spokesman Tom Hoyt told reporters on Wednesday, "There are no new plans to divest our brands or invest in a new alliance." In fact, Mr. Hoyt noted, Ford is actually considering forming an alliance with other automakers, which is a a move that General Motors Corp is contemplating with foreign automakers at the moment as well. The losses for Ford might not come as a shock to some, who noted that in July 2006 for the first time, Ford sold fewer vehicles in the United States than Toyota.