DETROIT, Michigan - July 25, 2008 -
The Ford Motor Company, stunned by abysmal sales of its most profitable
vehicles and a sudden shift in consumers’ tastes, said Thursday that it lost
$8.7 billion in the quarter, its worst ever, and would overhaul its North
American plants to focus on small cars.
The loss, equal to $3.88 a share, was mostly the result of $8 billion in write-downs because of falling demand for and resale values of gas-thirsty pickups and sport utility vehicles in the United States. Ford took charges of $5.3 billion related to lower asset values in North America and $2.1 billion on the lease portfolio at its financing arm, the Ford Motor Credit Company.
The news sent Ford shares tumbling nearly 10 percent in morning trading.