MercoPress. South Atlantic News Agency

Record losses in Ford but “no need” for government aid

US carmaker Ford reported this week the biggest full-year loss in its history, but said it still was not going to ask for government loans. Ford said its net loss for the fourth quarter of 2008 was 5.9 billion dollars, and 14.6 billion for the whole year.

Unlike its rivals General Motors and Chrysler, Ford so far has not sought federal loans. Carmakers around the world have been hit by a drop in global demand. Ford reported a loss of 2.7 billion in 2007 and 12.6 billion in 2006. The corporation added that its credit division would cut 1,200 jobs, or 20% of the division's workforce. In the fourth quarter of 2008, Ford's revenue fell to 29.2 billion, down from 45.5 billion a year earlier. Its quarterly net loss of 5.9 billion was bigger than expected by analysts. Despite the loss, Ford said in a statement that it had "sufficient liquidity" to fund its 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," the carmaker said in a statement. Ford has secured a 9 billion credit line from the US government in anticipation of worse times ahead. General Motors and Chrysler have actually received billions of dollars in emergency loans from the government. General Motors last year lost its 75 year record of cars sold to Japan's Toyota.