Bankruptcy Is Not an Option for Ford Motor co.
April 5th, 2006 by admin
Bill Ford Talks about the future of Ford.
Bill Ford, Chairman and CEO of Ford Motor Co., gave strong words to reporters, saying that, Ford would not even consider a Chapter 11 bankruptcy restructuring. Ford made this statement just before he was going to be awarded the 2006 Automotive Industry Executive of the Year.
"We don’t see it at all," Bill Ford said of a possible Chapter 11 filing. Ford Motor has ample liquidity, he said, stressing that the company was profitable in 2005.
He acknowledged that the U.S. auto industry is in a "precarious" state.
Ford Motor’s biggest problem is the bleeding North American auto business, which lost $1.6 billion before taxes and charges in 2005. Turning around that unit, the objective of the company’s Jan. 23 Way Forward restructuring announcement, requires tough decisions and nimble thinking, he said.
He acknowledged that the U.S. auto industry is in a "precarious" state.
Ford Motor’s biggest problem is the bleeding North American auto business, which lost $1.6 billion before taxes and charges in 2005. Turning around that unit, the objective of the company’s Jan. 23 Way Forward restructuring announcement, requires tough decisions and nimble thinking, he said.
Ford Motor Co. plans to close 14 plants through 2012 and cut 30,000 jobs in the hopes of saving the company.
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