I hear Ford is going out of business...is that true?
2006-12-06 13:44:03 · 13 answers · asked by boppyduffduff1990 3 in Cars & Transportation ➔ Car Makes ➔ Other - Car Makes
Several reasons, the main ones.
They relied too much on their SUV to make their money, so when the gas prices went up, their SUV sales dropped around 70%
One of their main vehicles, the Ford F150 pick up, has dropped on sales also by about 50% because the japanese are now making better pick ups.
They are just not making the cars that people want to buy, Toyota has already passed them as the number 2 automaker in the world, and Toyota is set to pass GM for the #1 spot in a few years.
They are also heavily burdened on their pension plans.
Most of their new models have not been very well received by the public. According to some Wall Street analyst, Ford and GM are not expected to survive for more than 5 to 10 years, they are in deep financial trouble. This is too bad, because they are an American icon.
2006-12-06 14:05:16 · answer #1 · answered by rmrndrs 4 · 0⤊ 0⤋
Both Ford and GM have lost sales over the last decade to "foreign" cars (that are quite often assembled in the US). The main problem is that GM and Ford build cars to American standards, not to worldwide standards of quality and emissions (which are much higher than in the US). Therefore, other cars sold overseas are more fuel efficient and of higher quality (gotta run that Autobahn somehow, eh?).
But neither company will fail completely. But they won't catch up on sales until they produce better cars.
2006-12-07 03:29:53 · answer #2 · answered by Alibi 4 · 0⤊ 0⤋
No. Ford is not going out of business. Ford lost a lot of money in the last quarter. A LOT of money.
However, Ford also has a lot of money in the bank.
Ford is in rough financial shape, and needs to figure out why that is. But, I highly doubt anyone is going out of business.
You don't just button up Ford HQ and send everyone home. You redesign, retool, remarket, restructure, etc.
2006-12-06 23:01:21 · answer #3 · answered by glenspot 3 · 0⤊ 0⤋
I doubt that, they are having financial problems right now same as GM did a while back and until they can build cars that people like they will continue to have problems, too many people think the foreign cars are better than the ones built by the big three and this is just not true anymore, it was in the 80's but not now, it's time that the american public wakes up and realizes this because every autoworker that looses his job five more people in car related jobs lose theirs.
2006-12-06 22:00:37 · answer #4 · answered by mister ss 7 · 0⤊ 0⤋
Many of its employees (@ 50%) have agreed to take an incentive to leave the company package (money) so Ford will remain in business with a leaner company.
Bottom line: America buys more foreign cars and it is affecting our economy and, the family, in the process. Sad, but true.
2006-12-06 21:48:19 · answer #5 · answered by Rhonda 7 · 0⤊ 0⤋
They are in danger of that. They were too arrogant to make cars that people wanted and needed. Instead they made the ones that were gas guzzlers and that people bought because they looked so mighty in the Ford commercials. Now that more people have come to their senses they can't move those crap cars and trucks off their dealers' lots. NO SALES = NO INCOME = BANKRUPTCY NEXT.
2006-12-06 21:54:23 · answer #6 · answered by Rich Z 7 · 0⤊ 0⤋
Well, for one they had 2 major recalls on most of their truck lineup in less than a year. That is a big hurt right there. Let alone that firestone tire disaster a few years ago. And it seems that they aren't having anything really worthwhile or interesting coming out.
2006-12-06 21:54:40 · answer #7 · answered by Silverstang 7 · 0⤊ 0⤋
no,,its not true at all,,its kind of funny at all the rumors that get started about car company,s.i own a repair shop,and i can tell you this ,,there not failing,,there joining up with another car company thought to make there cars better and safer,,but failing ,,not hardly,,they have been around to long to fail,,they have had some hard ships like every other car company though,,but due to foreign competition ,,all American car company's have had that,but they,ll make it,,good luck i hope this help,s,,,have a good -x-mas.
2006-12-06 21:53:17 · answer #8 · answered by dodge man 7 · 0⤊ 0⤋
Car industries go through phases all the time. I have not heard Ford is going out of business. However, if it does, perhaps it is because their vehicles must be Fixed Or Repaired Daily!
2006-12-06 21:47:10 · answer #9 · answered by Lady 3 · 0⤊ 2⤋
I'm near Detroit & yes, it may happen. Blame the Unions. Should a line worker be making $28.00 per hr. PLUS benefits? You tell me.
2006-12-06 22:06:18 · answer #10 · answered by yojoewanna 2 · 0⤊ 0⤋