Ford (F): January Sales Off 42%, Will Need Bailout

The Ford (F) media relations department writes the most misleading press releases of any large company in the US. Ford’s January sales were down 42%. The entire first section of the document on January sales covered how the firm’s F-150 trucks and Fusion models picked up market share.

The PR should have said "Ford Will Need Bailout Cash."

It is hard to imagine how a large car company could lose 42% of its unit sales in one month. Backing out numbers for Volvo and the drop at Ford was 39%.

Most of the damage was done in Ford’s sports utility segment where sales fell 53%. Sales for vehicles produced under the Mercury brand were off 44%, and units sold by the Ford flagship division fell almost 40%.

Ford may insist that it can make it to the end of the year without money from the federal government, but if sales remain off by these amounts, that is nearly impossible to believe. The UAW would have to allow Ford to cut massive numbers of jobs and change pension programs. Suppliers, many of which are nearly insolvent themselves, would have to cut their prices by unreasonable amounts.

Ford is about to join GM (GM) and Chrysler in the federal government bread line.

Douglas A. McIntyre