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Ford Motors Records Nearly $6 Billion Loss

In its worst economic announcement since 1992, Ford Motor Company - which has recently seen a change in leadership - has reportedly posted losses of $5.8 billion. Following the stepping down of Ford Motor`s CEO Bill Ford, a former executive from the Boeing corporation, Alan R. Mulally, took over the top helm. Mulally`s role was to help shephard the company through tough times and reverse the company`s image as well as its profits. The new results were not seen as a reflection on Mr. Mulally, who only attained the top post in September.

The $5.8 billion loss was noted within the company`s third quarter earnings statement, and echoes the past poor performance of General Motors. GM, following several cost-cutting measures, managed to post a $300 million profit in the third quarter. One of the big three U.S. automakers, Ford`s market share has slid in the face of increased internal competition as well as the entry of Asian automakers such as those from Japan and South Korea. These companies have not only seen their sales increase, but have also constructed factories in the U.S. itself.

The recent high gas prices in America didn`t help any of the automakers though, as $3-a-gallon plus prices led people to move toward alternative forms of transportation and kick-started efforts to get mass transit projects throughout the country begun. Many U.S. communities had delayed the beginning of construction of mass transit systems, or had flat-out voted them down in previous years. While gas prices have since lowered as tensions with Iran have abated (temporarily, many agree), any increase in Mideast tensions would increase gas prices again.