Ford loses $6bn, won't seek aid

Chicago - Ford announced on Thursday a quarterly loss of $5.9bn, capping a nightmarish year, but said it had "sufficient liquidity" to fund its turnaround plan without US government aid.

The number two US automaker's results showed a sharp widening of its losses as auto sales were slammed in the fourth quarter by a deep economic crisis and credit squeeze.

But Ford said that unlike rivals GM and Chrysler, it had enough cash to keep operating as it executes a restructuring plan.

"Based on current planning assumptions, it does not need a bridge loan from the US government, barring a significantly deeper economic downturn or a significant industry event, such as the bankruptcy of a major competitor that causes disruption to the company's supply base, dealers or creditors," Ford said in a statement.

Ford's loss in the fourth quarter was more than double the deficit in the same period in 2007 of $2.8bn. Revenues plunged some 33% to $29.2bn in the period, amid weak sales and the divesting of its Jaguar division.

For all of 2008, Ford posted a whopping loss of $14.57bn, compared with a $2.7bn loss in all of 2007.

Revenues for the year fell to $146bn from $172bn.

"Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results," said Ford president and chief executive Alan Mulally.

"We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds."

The Detroit giant said it "has sufficient liquidity to fund its business plan and product investments."

Ford said it finished 2008 with $24bn in available liquidity for its auto operations including $13.4bn in cash.

- AFP