January 2012 Car Sales Are Strong–Except At GM
While nearly every automaker reported brisk, upbeat sales numbers for the first month of 2012, General Motors didn't have much to cheer.
GM sales were off by 6 percent last month, while its crosstown rivals were up, strongly in the case of Chrysler, which reported a sales increase of 44 percent, while Ford rose 7 percent.
Also on the upturn were Toyota and Honda, both reporting solid sales increases nearly a year after the destructive March 11 earthquake in northern Japan devastated the country and one of its auto production bases.
January's sales numbers were all that much more impressive given the predictions made just a week ago. Analysts at J.D. Power had expected sales to come in at nearly 13.5 million units, with 10.9 million of those sold to retail customers. With tallies complete, Automotive News now reports that U.S. auto sales rose 11 percent on the month to a total of 913,284 units, for a seasonally-adjusted annual rate, or SAAR, of 14.2 million units.
For the year, the SAAR could rise to 14.5 million units, some automakers predict.
The strengthening in the market is unmistakable, Power's senior vice president of global automotive operations John Humphrey said in a release. “Vehicles are currently remaining on dealer lots for fewer than 50 days on average, which is the lowest level for January for the past several years. This is a good indication that pent-up demand is beginning to return to the market.”
The numbers for January 2012, as reported by the automakers:
General Motors: GM (NYSE: GM) reported sales off by 6.1 percent in January, an off-note drop while other major brands posted strong increases. As a whole, GM sold 167,962 vehicles in January 2012. Chevrolet sold 123,864 units, down 1.2 percent from a year ago; GMC moved 24,966 units, down 9.7 percent; Buick sold 10,208 vehicles, off 23.1 percent; and Cadillac was down 29.1 percent at 8,924 units. Volt sales were off by nearly half, but Chevy's Cruze, Malibu and Impala continued to sell well.
Ford: Ford (NYSE: F) sales grew 7 percent over what the automaker calls a strong January 2011. Ford sold 136,710 vehicles in the month, with 131,589 units coming from the Ford brand, which was up 8.3 percent on the month. The 2012 Focus--TheCarConnection's 2012 Best Car To Buy--had a 60-percent sales gain, with F-150 and Explorer sales up as well. However, Lincoln sold 5,121 vehicles, down 7.9 percent from last year's numbers--and just 78 cars more for the whole brand than Ford counted in sales of its outgoing Ranger compact pickup.
Toyota / Lexus / Scion: Toyota's trio of brands reported 124,540 cars and trucks sold in January, up 7.5 percent over the same period in 2011. Toyota got big help from the new Camry, and rose 9 percent to 112,266 units sold. Lexus moved 12,274 vehicles in January for a 4.6-percent decrease, and Scion sold 3,535 vehicles in the month, up 7.9 percent from the same period in 2011.
Chrysler: Chrysler posted the biggest sales increase of any major automaker, posting a 44-percent rise on plenty of fleet sales mixed in with stronger numbers for some of its mainstay products. In all, it sold 101,149 units, with the Chrysler brand growing its numbers by 81 percent, to 17,604 units. Jeep held strong with a 37-percent increase to 31,710 sales, with Dodge posting a 29-percent rise on sales of 31,454 vehicles. Ram trucks accounted for 18,470 vehicle sales, up 42 percent, and Fiat sold 1,911 vehicles in January--down from 2,655 units in December. The Chrysler 200 sedan and convertible posted a sales increase of 789 percent on the month.
Honda / Acura: Honda reported total January 2012 sales of 83,009 units, an increase of 8.8 percent over the same period in 2011. The Honda brand tallied 74,628 of those sales, up 9.3 percent, with Acura rising 5.3 percent with 8,381 sales last month. The Honda CR-V is off to a good sales start, with record January sales up 16 percent over January 2011.
Nissan / Infiniti: Nissan and its luxury Infiniti brand combined for sales of 79,313 vehicles in January, up 10.4 percent over January 2011's 71,847 units. Nissan accounted for 72,517 units, up 12.5 percent, with Altima up 35.9 percent; Infiniti was down 8.2 percent at 6,796 units, from 7,405 units the year prior.
November 2011 Car Sales: Ahead of the Curve
New vehicle sales continued their slow, steady improvement in November across most of the major brands, automakers reported along with monthly sales today.
Projections had the month coming in at anywhere from TrueCar's estimated seasonally adjusted selling rate (SAAR) of 13.3 million units, to some automaker estimates of a SAAR as high as 13.8 million.
Analysts said the baseline improvement over year-ago numbers means this recovery is solidly underway, even if it's not a particularly vigorous one.
“The improving performance of the past three months suggests that the current momentum, primarily driven by replacement demand and improvements in vehicle availability, is not an aberration,” said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates.
For the year, Power's figures now predict a year-end SAAR of 12.8 million units including fleet sales, with an early estimate of 13.8 million for calendar year 2012.
Which brands posted increases on the month, and which have more warning signs to read as economic recovery fails to gain steam? The results by automaker, with some still to come:
General Motors: GM (NYSE: GM) said it sold 180,402 vehicles in November, an increase of 7 percent over November 2010. Chevrolet sales grew by 9.8 percent, and GMC's numbers rose by 6.8 percent--but Buick fell 7.2 percent and Cadillac was off 5.6 percent, both somewhat victims of the wind-downs in sales of outgoing models like the Lucerne and DTS. Trucks accounted for a big part of GM's growth, with increases on most of its full-size SUVs. Of concern at Chevrolet, the mainstay Impala sedan was off 26 percent, while the big Traverse crossover was down 28 percent.
Ford: Ford (NYSE: F) saw its sales rise by 13.3 percent, while its Lincoln brand fell by 17.6 percent. Big numbers were posted by the Explorer, which was up 217 percent over November 2010, and the outgoing Ranger compact pickup truck, which was up 85 percent. On the downside, Ford's big crossovers were off: the Flex saw its sales fall 13 percent, while Lincoln's MKT was off 45 percent.
Chrysler: Chrysler Group reported buoyant sales of 107,172-- a 45-percent increase over sluggish November 2010 numbers. Chrysler as a brand was up 92 percent; Jeep was up 50 percent and Dodge rose 43 percent, while Ram truck sales were up 8 percent. Sales of the Fiat 500 hit a grand total of 17,444 units on the year, far off initial estimates of 50,000 units for calendar-year 2011.
Toyota / Lexus: Not yet reported.
Honda / Acura: Not yet reported.
Nissan / Infiniti: Nissan sales strengthened in November 2011 to 85,182 units, up 19.4 percent over a year ago. Nissan-brand sales rose 21 percent to 76,754 units, including 672 Nissan Leaf sales. Infiniti sales were up 3 percent on the month.
Hyundai: Not yet reported.
Kia: Not yet reported.
Volkswagen: VW continued its sales surge behind the year-old Jetta sedan and the new 2012 Passat sedan. The duo both are up 59 percent on the year. November sales for VW on the whole were 28,412 units, an increase of 40.7 percent; year to date, VW is up 25.3 percent. Last month, one in five vehicles sold by Volkswagen in the U.S. was powered by a diesel engine.
BMW / MINI: Not yet reported.
Mercedes-Benz: Not yet reported.
Subaru: Not yet reported.
Mazda: Not yet reported.
Audi: Not yet reported.
Mitsubishi: Not yet reported.
Volvo: Not yet reported.
Porsche: Not yet reported.
Jaguar/Land Rover: Not yet reported.
Suzuki: Not yet reported.
Saab: Not yet reported.
This story originally appeared at The Car Connection
August 2011 Car Sales: Another Small, Disappointing Rebound
With the numbers rolling in from major automakers today, it's difficult to not see progress in August 2011's car sales figures versus those posted in July--but still, the overall trend is slow, slow, slow.
According to market analysts at J.D. Power, the seasonally adjusted seling rate (SAAR) for August 2011 totaled 9.9 million retail units, a slight improvement over figures for July, but well off the 11-million-unit rate seen in February.
When fleet sales are factored in, the 12.1-million-unit SAAR actually fell a fraction of a percent versus July.
Economic frustration continues to keep car shoppers away from dealerships, Power's director of global forecasting Jeff Schuster says. “There is little question that a strong level of pent-up demand exists, but economic and financial uncertainty is keeping it from being released.”
For the year, Power expects a total of 10.2 million retail vehicle sales, and 12.6 million units including fleet sales.
Which brands posted increases on the month, and which have more warning signs to read as economic recovery fails to gain steam? The results by automaker, with some still to come:
General Motors: GM (NYSE: GM) posted August sales of 218,479 vehicles, for an 18-percent boost. Chevrolet's winners included the Cruze and Equinox, while GMC's Terrain was up 88 percent. Buick had its 23rd consecutive sales increase, year over year, and the Regal posted sales double those of last August.
Ford: Ford (NYSE: F) sales of 175,220 were an increase of 11 percent over August 2010. Ford-brand sales rose 16 percent, while Lincoln pulled out of last month's swoon for a 25-percent increase. The Explorer continued its sales rehabilitation, with numbers up 300 percent from August 2010.
Chrysler: Chrysler sales of 130,119 units translated into a 31-percent increase over last year. Jeep sales were up 58 percent; Fiat had its best sales month yet. Big movers included the Jeep Wrangler and Grand Cherokee, and the Dodge Durango.
Toyota / Lexus: Toyota sales fell 16.1 percent, on total volume of 129,483 vehicles. The Toyota division was down 16.9 percent, while Lexus sales dropped 10.6 percent.
Honda / Acura: Honda says its August 2011 sales results still were affected by the March earthquake in Japan. The company sold 73,267 Honda-brand cars, off 21.2 percent from a year ago, and Acura's sales of 9,054 units were a drop of 24.5 percent. Total sales of 82,321 vehicles represented a decrease of 27.2 percent.
Nissan / Infiniti: Nissan said its August 2011 sales totaled 91,541 units, for a 19.2-percent increase. Infiniti's numbers actually were down 4.3 percent, but Nissan-branded cars sold 22.4 percent better than in August 2010. The Leaf electric car topped 1,362 sales, and the Rogue had its best month ever, while the mid-size Altima lineup saw sales rise almost 25 percent over a year ago.
Hyundai: Hyundai CEO John Krafcik says, via Twitter: "August sales? Up 9% over last year to 58,505."
Kia: Kia had its best August ever, with total sales of 41,188 vehicles, for a 26.9-percent increase.
Volkswagen: VW continued its sales streak with a 10.4-percent climb; it's up almost 21 percent on the year. Jetta sales rose 55.5 percent, while the Touareg climbed 140 percent. Diesels continue to account for about a quarter of all Volkswagen sales in the U.S.
BMW / MINI: Not yet reported.
Mercedes-Benz: Not yet reported.
Subaru: Subaru's long streak of sales wins was interrupted again by a 6.3-percent drop in August, with total vehicle sales of 20,837 units. The automaker is affected by some supply problems due to the March earthquake in Japan. On the year, the brand is up 1.4 percent.
Mazda: Not yet reported.
Audi: Not yet reported.
Mitsubishi: Not yet reported.
Volvo: Not yet reported.
Porsche: The sportscar, sedan and SUV maker reported August sales of 2,184 vehicles, a 7-percent increase over last August's 2,032 vehicles.
Jaguar/Land Rover: Sales of Jaguar vehicles fell to 810 units in August, a 43-percent drop attributed to model changeover. Land Rover sales of 2,807 vehicles represented a 10-percent increase over last August. On the year, the two brands are up 9 percent over 2010, with Land Rover up 16 percent and Jaguar down 7 percent.
Suzuki: For the 11th month in a row, Suzuki sales were up, this time 32 percent over August 2010.
Saab: Not yet reported.
This story originally appeared at The Car Connection
Toyota Issues Recall For Sticking Gas Pedals, Affects 2.3 Million Cars
As many suspected, it turns out there's more to the claims of unintended acceleration at Toyota than some problematic floor mats. Unfortunately, also like the floor mat issue, Toyota appears to be taking voluntary action only after widespread complaints about the issue. The recall affects 2.3 million vehicles spread across eight model lines.
According to Toyota, the problem has emerged in the past several months as a completely separate condition from the existing floor mat recall, which affected 4.2 million vehicles. About 1.7 million vehicles are subject to both problems.
"Our investigation indicates that there is a possibility that certain accelerator pedal mechanisms may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position. Consistent with our commitment to the safety of our cars and our customers, we have initiated this voluntary recall action," said Toyota Motor Sales group vice president Irv Miller in a release today.
The eight models affected include:
2009-2010 RAV4,
2009-2010 Corolla
2009-2010 Matrix
2005-2010 Avalon
2007-2010 Camry
2010 Highlander
2007-2010 Tundra
2008-2010 Sequoia
While Toyota says the condition is rare, when it occurs it presents in worn pedal mechanisms that become harder to depress and slower to return, potentially becoming stuck in the depressed position. With the throttle then stuck wide open, the car can continue to accelerate even while braking. Toyota advises drivers experiencing a stuck accelerator pedal to apply the brakes steadily and firmly, and to shut off the engine at the nearest safe location.
Toyota says no Lexus or Scion-brand vehicles were affected by the recall, though the Toyota Matrix shares its design and construction at California's NUMMI plant with the Pontiac Vibe, so it's possible that more cars yet may fall under the recall.
This story originally appeared at The Car Connection
Auto Sales Flat For November (It’s A Good Thing)
If, as they say, "flat is the new up", then auto sales were way up last month. The U.S. saw 746,928 car and truck sales in November 2009 -- a statistical dead-heat with the 746,789 sold in November 2008. Of course, not every automaker stayed flat: Ford sales crept up .1%, while GM dipped 1.8% and Chrysler tumbled 25.5%. At the top of the heap? Nissan, which jumped 20.8%, and Hyundai, which surged a staggering 45.9%. The big news for now seems to be that the U.S. economy has stabilized -- which isn't as nice as growth, but if you recall the way everyone felt last November, it's a definite improvement. [DetNews]
This story originally appeared at The Car Connection
Ford Posts Strong Financial Data, First Profit Since 2005
The rumors were true: Ford Motor Company has just published financials from the third quarter of 2009, and without being overly optimistic, it's fair to say that the data is moderately rosy. Among several bright spots in the report, one that seems particularly impressive is that July - September of 2009 saw Ford North America's first profit since the first quarter of 2005, four-and-a-half years ago.
In addition to Ford's North American pre-tax profit of $357 million, the company recorded a total net income of $997 million during Q3. That's a substantial improvement on the roughly $200 million loss posted one year ago, during Q3 of 2008 (which was, as you recall, about the time that the entire industry began sliding off a cliff). Ford anticipates being fully profitable by calendar year 2011.
In the company's official press release (pasted below), Ford cites several reasons for its improved financial data, including reduced production expenses, strong product lineups, and higher transaction prices and profit margins. Over the three months, Ford increased market share in the U.S. by 2.2% and posted a small but respectable .6% growth in Europe. Most shockingly, Ford sales exploded in China, surging upward by 63%.
What's not much mentioned in the release, of course, is Cash-for-Clunkers, which had a huge impact on the company's sales in North America. However, even the aberrations associated with America's Cash-for-Clunkers can't account for the profitability of Ford's global operations. So, while we know there's room for skepticism when it comes to some of Ford's figures, it seems hard to argue with the fact that Ford is on the right track.
We're not financial analysts or advisers (obviously), but there appears to be quite a lot for Ford to crow about in Q3 of 2009. If you have nothing else to do on this Monday morning, feel free to scan Ford's full press release below and give us your take on the news.
* * * * *
Ford Posts Third Quarter 2009 Net Income of $1 Billion; Cash Flow Turns Positive; North America Profitable(+)
DEARBORN, Mich., Nov. 2 /PRNewswire-FirstCall/ --
- Reported net income of $997 million, or 29 cents per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago. It is Ford's first pre-tax operating profit since the first quarter of 2008
- Ford North America posted a pre-tax operating profit of $357 million, its first profitable quarter since the first quarter of 2005
- Reduced Automotive structural costs by $1 billion, bringing the total reduction to $4.6 billion through the first nine months of 2009, and exceeding the full-year target of $4 billion
- A strong product lineup drove market share gains in North America, South America and Europe as well as continued improvements in transaction prices and margins
- Ended the quarter with $23.8 billion of Automotive gross cash, up $2.8 billion from the end of second quarter 2009(++)
- Achieved positive Automotive operating-related cash flow of $1.3 billion for the third quarter, a $2.3 billion improvement over the second quarter
- Ford Credit reported a pre-tax operating profit of $677 million, a $516 million improvement from a year ago
- Ford now expects to be solidly profitable ( )in 2011, excluding special items, with positive operating-related cash flow
Financial Results Summary Third Quarter First Nine Months ------------- ----------------- 2009 O/(U) 2009 O/(U) 2008 2008 ---- ----- ---- ---- Wholesales (000)(+) 1,232 57 3,377 (891) Revenue (Bils.) (+) $30.9 $(0.8) $82.9 $(26.2) Operating Results (+) -------------------------- Automotive Results (Mils.) $446 $3,385 $(2,493) $523 Financial Services (Mils.) 661 502 1,194 1,305 --- --- ----- ----- Pre-Tax Results (Mils.) $1,107 $3,887 $(1,299) $1,828 After-Tax Results (Mils.)(+++) $873 $3,882 $(1,557) $2,381 Earnings Per Share (+++) $0.26 $1.58 $(0.54) $1.22 Special Items Pre-Tax (Mils.) $108 $(2,099) $3,265 $9,484 ----------------------------- Net Income/(Loss) Attributable to Ford -------------------------------------- After-Tax Results (Mils.) $997 $1,158 $1,831 $10,619 Earnings Per Share $0.29 $0.36 $0.61 $4.55 Automotive Gross Cash (Bils.) (++) $23.8 $4.9 $23.8 $4.9 ---------------------------------- ----- ---- ----- ---- See end notes following conference call details.
Ford Motor Company [NYSE: F] today reported net income of $997 million, or 29 cents per share, in the third quarter as strong new products, structural cost reductions and improved results at Ford Credit lifted the company's results despite continued weak global economic conditions. This is a $1.2 billion improvement compared with the same period last year.
Excluding special items, Ford posted pre-tax operating profits totaling $1.1 billion, an improvement of $3.9 billion from a year ago. This marks the company's first operating profit since the first quarter of 2008. On an after-tax basis, excluding special items, Ford posted an operating profit of $873 million in the third quarter, or 26 cents per share, compared with a loss of $3 billion, or $1.32 per share, a year ago.( )
Ford's North American operations posted a pre-tax operating profit of $357 million, its first quarterly profit since the first quarter of 2005. Ford South America, Ford Europe and Ford Asia Pacific Africa also posted pre-tax operating profits in the third quarter.
"Our third quarter results clearly show that Ford is making tremendous progress despite the prolonged slump in the global economy," said Ford President and CEO Alan Mulally. "Our solid product lineup is leading the way in all markets. While we still face a challenging road ahead, our One Ford transformation plan is working and our underlying business continues to grow stronger."
Ford's third quarter revenue was $30.9 billion, down $800 million from the same period a year ago. Automotive revenue is up $100 million from a year ago. This improvement was offset by a decrease in Ford Credit's revenue reflecting a decline in receivables.
Ford reduced its Automotive structural costs by $1 billion in the quarter, largely driven by lower manufacturing and engineering costs, which included benefits from improved productivity, personnel reduction actions primarily in North America and Europe, and progress on implementing its common global platforms and product development processes. Through the first nine months, Ford has achieved $4.6 billion in Automotive structural cost reductions, exceeding its full-year 2009 target of $4 billion.
Ford finished the third quarter with $23.8 billion in Automotive gross cash, compared with $21 billion at the end of the second quarter of 2009. Automotive operating-related cash flow was $1.3 billion positive during the third quarter of 2009, an improvement of $2.3 billion from the second quarter 2009. Automotive operating-related cash flow was $3.4 billion negative during the first nine months.
"The Ford team delivered another solid quarter of results with strong contributions from all our business regions," said Lewis Booth, Ford executive vice president and chief financial officer. "Positive cash flow, a stronger balance sheet and a third quarter operating profit are evidence that Ford is meeting the global economic challenges."
The following discussion of third quarter highlights and results are on a pre-tax basis and exclude special items. See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and any necessary reconciliation to U.S. GAAP. Discussion of Automotive overall operating cost changes is at constant volume, mix, and exchange, and excludes special items; discussion of Automotive structural cost changes is at constant exchange and excludes special items.
THIRD QUARTER HIGHLIGHTS
- Ford again increased year-over-year market share in North America, South America, and Europe and continued to achieve improvements in transaction prices and margins. Ford maintained market share in the Asia Pacific Africa region and Volvo gained market share. Other sales highlights:
- In the U.S., third quarter market share increased 2.2 percentage points compared to last year as the Ford, Lincoln and Mercury brands all posted sales gains
- Ford Europe's market share was 9.2 percent for the quarter, up 0.6 points from last year and the highest third-quarter level in 10 years. Market share was 10.1 percent in September, the highest monthly share in eight years
- Record growth in China continued as Ford third quarter sales jumped 63 percent
- At the end of the third quarter, worldwide sales of the new Ford Fiesta reached 470,000 units since its launch last fall. The No. 2 best-selling car in Europe posted its highest September sales since 1994. In September, Fiesta also had its best sales month ever in China. Fiesta arrives in the U.S. market in 2010
- Began selling the new Ford Taurus and Transit Connect in North America. Taurus sales in September were up 60 percent from a year ago
- The Ford Focus and Ford Escape were among the top new vehicles purchased in the U.S. government's "Cash for Clunkers" program
- Ford's U.S. hybrid sales have risen 73 percent this year compared to a 14 percent decline in U.S. hybrid industry sales. More than 60 percent of Ford Fusion hybrid sales have come from non-Ford owners
- Began production of the Ford Transit Connect small commercial van at the new manufacturing plant in Craiova, Romania
- Announced investment of $500 million at Ford India's Chennai assembly plant to build the new Ford Figo, a small car targeted at the heart of the Indian market, debuting in 2010
- Announced a new $490 million assembly plant in Chongqing, China, which will be completed by 2012, and will produce the Ford Focus for the Chinese market
- Ford, Lincoln and Mercury brand vehicles in the U.S. had the fewest number of "things gone wrong" among all automakers, according to the third quarter GQRS study of new vehicle quality
- Received $886 million in loans from the U.S. Department of Energy for development of more fuel-efficient vehicles. Ford has been approved for up to $5.9 billion in loans in support of projected expenditures through mid-2012
- Raised $565 million in new equity as Ford completed its previously-announced plan to issue up to $1 billion of equity
- Ford Credit completed $10 billion in funding in the third quarter, including $2.8 billion unsecured, and now has essentially completed its full-year funding plan
- The Ford Taurus and Lincoln MKT both earned a "Top Safety Pick" from the Insurance Institute for Highway Safety. Ford Motor Company continues to have more IIHS "Top Safety Pick" ratings than any other automaker
- Unveiled the all-new Ford C-MAX at the Frankfurt Motor Show. The C-MAX and the Grand C-MAX will debut in Europe in 2010, and the Grand C-MAX debuts in the U.S. in 2011. The new global C-car platform will underpin up to 10 models and more than 2 million units annually by 2012
- Announced that Ford's 1.6-liter and 2.0-liter four-cylinder EcoBoost engines will make their debut in 2010 across Europe, North America, and Australia
- Unveiled the new Ford Figo to compete in India's small car segment beginning in 2010
- Launched the new Ford Fiesta in Taiwan and continued the successful rollout of the Ford Focus and Ford Everest SUV in additional Asian markets
- Revealed the new 2011 Ford F-Series Super Duty and two new powertrains developed by Ford - a 6.7-liter V8 diesel engine and a 6.2-liter V8 gasoline engine
- Began selling the 2010 Ford F-150 SVT Raptor, an off-road performance truck, which captured the "2009 Pickup Truck of Texas" award from the Texas Auto Writers. The Ford F-150 won the overall "Truck of Texas" award, the seventh straight year a Ford truck has earned the honor
AUTOMOTIVE SECTOR Automotive Sector* Third Quarter First Nine Months ------------- ----------------- 2009 O/(U) 2008 2009 O/(U) 2008 ---- ---------- ---- ---------- Wholesales (000) 1,232 57 3,377 (891) Revenue (Bils.) $27.9 $0.1 $73.3 $(23.6) Pre-Tax Results (Mils.) $446 $3,385 $(2,493) $523 *excludes special items -----------------------
For the third quarter of 2009, Ford's Automotive sector reported a pre-tax operating profit of $446 million, compared with a pre-tax loss of $2.9 billion a year ago. The improvement primarily reflects favorable net pricing, structural cost reductions, lower material costs and improved market share, offset partially by unfavorable exchange and lower industry volumes.
Worldwide Automotive revenue in the third quarter was $27.9 billion, up $100 million from a year ago. The increase is more than explained by favorable net pricing and higher volumes, primarily in North America, offset partially by unfavorable exchange. Total vehicle wholesales in the third quarter were 1,232,000, compared with 1,175,000 units a year ago.
Automotive structural cost reductions in the third quarter totaled $1 billion, including $500 million in North America. Manufacturing and engineering costs were $500 million lower, largely reflecting the continued benefits of improved productivity, personnel reduction actions primarily in North America and Europe, and progress on the implementation of Ford's common global platforms and product development processes. Pension and retiree health care costs were lower, reflecting the effect of the UAW Retiree Health Care VEBA agreement. Overall, Ford reduced Automotive structural costs by $4.6 billion during the first nine months.
Net pricing was $1.9 billion favorable, primarily explained by higher U.S. net pricing, reflecting the success of new products, a continued disciplined approach on incentives and selective top-line pricing.
North America: For the third quarter, Ford North America reported a pre-tax operating profit of $357 million, compared with a loss of $2.6 billion a year ago. The improvement was primarily explained by favorable net pricing, lower material costs, structural cost reductions, favorable series mix and improved market share, offset partially by unfavorable exchange and lower U.S. industry volume. Third quarter revenue was $13.7 billion, up from $10.8 billion a year ago.
South America: For the third quarter, Ford South America reported a pre-tax operating profit of $247 million, compared with a profit of $480 million a year ago. The decrease is more than explained by unfavorable exchange, primarily in Brazil and Argentina. Third quarter revenue was $2.1 billion, down from $2.7 billion a year ago.
Europe: For the third quarter, Ford Europe reported a pre-tax operating profit of $193 million, compared with a profit of $69 million a year ago. The improvement was more than explained by structural cost reductions, lower material costs and favorable net pricing, offset partially by unfavorable volume and mix and exchange. Third quarter revenue was $7.6 billion, down from $9.7 billion a year ago.
Asia Pacific Africa: For the third quarter, Ford Asia Pacific Africa reported a pre-tax operating profit of $27 million, compared with a profit of $4 million a year ago. The increase primarily reflects favorable net pricing, China joint venture profits, and cost reductions, offset partially by unfavorable exchange. Third quarter revenue was $1.5 billion, down from $1.7 billion a year ago.
Volvo: Volvo continues to be reported as an ongoing operation. The effects of "held-for-sale" accounting-related adjustments are reported as special items. For the third quarter, Volvo reported a pre-tax operating loss of $135 million, compared with a loss of $458 million a year ago. The improvement is more than explained by continued progress on cost reductions, favorable exchange, and higher volume and mix. Third quarter revenue was $3 billion, up from $2.9 billion a year ago. Also, as announced last week, Ford confirmed Geely as the preferred bidder in the ongoing discussions concerning the possible sale of Volvo Cars.
Other Automotive: Other Automotive, which consists primarily of interest and financing-related costs, was a third quarter pre-tax loss of $243 million.
FINANCIAL SERVICES SECTOR Financial Services Sector* Third Quarter First Nine Months ------------- ----------------- (in millions) 2009 O/(U) 2008 2009 O/(U) 2008 ------------ ---- ---------- ---- ---------- Ford Credit Pre-Tax Results $677 $516 $1,287 $1,388 Other Financial Services (16) (14) (93) (83) ---- ---- ---- ---- Financial Services Pre-Tax Results $661 $502 $1,194 $1,305 ==== ==== ====== ====== *excludes special items -----------------------
For the third quarter, the Financial Services sector reported a pre-tax operating profit of $661 million, compared with a profit of $159 million a year ago.
Ford Motor Credit Company: For the third quarter, Ford Credit reported a pre-tax operating profit of $677 million, compared with a pre-tax profit of $161 million a year ago. The increase primarily reflected lower residual losses due to higher auction values, and lower provisions for credit losses, offset partially by lower volume.
Other Financial Services: For the third quarter, Other Financial Services reported a pre-tax operating loss of $16 million in the third quarter, compared with a loss of $2 million a year ago.
OUTLOOK
Despite the severe global downturn, Ford said it continues to make progress on all four pillars of its plan:
- Aggressively restructure to operate profitably at the current demand and changing model mix
- Accelerate the development of new products that customers want and value
- Finance the plan and improve the balance sheet
- Work together effectively as one team, leveraging Ford's global assets
Ford said it remains on track to achieve or exceed all of its 2009 financial targets and almost all of its operational metrics. Ford will also continue to pursue actions to improve its balance sheet.
Ford expects full-year 2009 U.S. industry sales will be about 10.6 million units, consistent with the guidance previously communicated by the company. In Europe, Ford now expects that full-year industry sales will be about 15.7 million units, which is higher than its previous guidance.
Ford expects fourth quarter 2009 production to be up compared with year-ago levels and third quarter 2009 production. This increase is to return to planned dealer stock levels and match production with market demand for Ford products.
Ford now expects full-year Automotive structural cost reductions of about $5 billion, exceeding its full-year 2009 target. These costs were reduced by $4.6 billion through the first nine months. Going forward, Ford expects structural costs to be relatively stable as the company has largely completed its significant restructuring actions over the past four years.
The company said it expects full-year U.S. and Europe market share to remain at about the same levels achieved during the first nine months.
Ford expects Automotive operating-related cash flow to be positive in the fourth quarter, based on the company's present planning assumptions.
Ford now expects capital spending of about $5 billion, or slightly less. Capital expenditures through the first nine months were $3.4 billion; higher projected fourth quarter spending reflects the timing of Ford's product launches as the company maintains its product plans.
Ford Credit expects to be profitable in the fourth quarter and for the full-year 2009. Next year, Ford Credit expects reduced profits based on lower average receivables and the non-recurrence of favorable 2009 factors.
Based on its recent performance and present planning assumptions, Ford is changing its full-year 2011 guidance for total company and North American Automotive operations from being "breakeven or better" to "solidly profitable" on a pre-tax basis excluding special items, with positive Automotive operating-related cash flow.
While the company has confidence that the global economy will be improving by 2011, the near-term growth outlook remains rather uncertain. Looking at 2010, there is a high likelihood of a substantial decrease in European industry volume as scrappage programs expire. This decrease could more than offset U.S. sales volumes, which may improve somewhat from this past quarter's levels.
Ford expects to know more about the state of the global economic recovery and its impact on 2010 auto industry volumes in the coming months. Early next year, Ford will provide guidance on its 2010 planning assumptions and operational metrics when the company releases its full-year 2009 results.
"The third quarter is one the entire Ford extended team can be proud of because it proves that our product-led transformation is working," Mulally said. "Leading indicators are now showing signs of recovery in all of our major markets, however, consumer confidence and labor market conditions remain a concern.
"Despite the continued economic headwinds, we remain confident that we have the right plan and are taking the right actions to transfer Ford into a lean company that delivers profitability growth for all our stakeholders," Mulally added.
Ford's 2009 planning assumptions regarding the industry and operating metrics include the following:
Planning Assumptions Full Year Plan Full Year Memo: First Outlook Nine Months -------------------- -------------- ------------- ----------- Industry Volume (SAAR)**: -U.S. (million units) 10.5 - 12.5 About 10.6 10.5 -Europe (million units)*** 12.5 - 13.5 About 15.7 15.7 Operational Metrics Compared with 2008: Quality: -- U.S. Improve On track Improved -- International Improve Mixed Mixed --Automotive Structural Improve by about $4 Improve by about Improved by Costs**** Billion $5 Billion $4.6 Billion -- U.S. Total Market Share (Ford and LM) Stabilize Improve 15.0% Share of Retail Market Stabilize Improve 12.9% -- Europe Market Share *** Equal / Improve Improve 9.2% --Auto. Negative but On track $(3.4) Operating-Related Significant Billion Cash Flow***** Improvement Absolute Amount: --Capital Spending $5 Billion to $5.5 About $3.4 Billion $5 Billion Billion FORD IS ON TRACK TO BE SOLIDLY PROFITABLE IN 2011 WITH POSITIVE OPERATING-RELATED CASH FLOW* * Pre-tax profits excluding special items ** Includes medium and heavy trucks *** European 19 markets Ford tracks **** Cost changes are measured at constant exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material, freight and warranty costs are measured at constant volume and mix ***** See tables at end for reconciliation to GAAP ---------------------------
Ford's production volumes are shown below:
Production Volumes Actual Forecast ------------------ ------ -------- Third Quarter 2009 Fourth Quarter 2009 ------------------ ------------------- O/(U) O/(U) Units 2008 Units 2008 ----- ---- ----- ---- (000) (000) (000) (000) Ford North America 490 72 570 141 Ford Europe 385 (9) 456 91 Volvo 77 5 95 27 ----- -- -- -- --
CONFERENCE CALL DETAILS
Ford Motor Company [NYSE: F] releases its preliminary third quarter 2009 financial results at 7 a.m. EST today. The following briefings will be conducted after the announcement:
At 9 a.m. EST, Alan Mulally, Ford president and chief executive officer, and Lewis Booth, Ford executive vice president and chief financial officer, will host a call for the investment community and news media to discuss third quarter results.
At 11 a.m. EST, Bob Shanks, Ford vice president and controller, Neil Schloss, Ford vice president and treasurer, and K.R. Kent, Ford Motor Credit Company vice chairman and chief financial officer, will host a conference call for fixed income analysts and investors.
The presentations (listen-only) and supporting materials will be available on the Internet at www.shareholder.ford.com. Representatives of the news media and the investment community participating by teleconference will have the opportunity to ask questions following the presentations.
Access Information - November 2, 2009
Earnings Call: 9 a.m. EST
Toll Free: 866-356-4123
International: 617-597-5393
Earnings Passcode: "Ford Earnings"
Fixed Income: 11 a.m. EST
Toll Free: 866-730-5766
International: 857-350-1590
Fixed Income Passcode: 70059906 (Please note the new password)
Replays - Available after 2 p.m. the day of the event through Nov. 9
Toll Free: 888-286-8010
International: 617-801-6888
Passcodes:
Earnings: 29481628
Fixed Income: 55865600
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com.
# # #
+ The financial results discussed herein are presented on a preliminary basis; final data will be included in Ford's Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. "Net income" and "Net loss" herein refer to "Net income/(loss) attributable to Ford" on our Statement of Operations, reflecting new presentation required by new accounting standards. 2008 results have been adjusted for the effect of new accounting standards, and for the reclassification of certain Financial Services sector revenue items. Discussion of overall Automotive cost changes, including structural cost changes (e.g., manufacturing and engineering, pension/OPEB, overhead, etc.), is at constant exchange and excludes special items and discontinued operations. In addition, costs that vary directly with production volume, such as material, freight, and warranty costs, are measured at constant volume and mix. See tables following the "Safe Harbor/Risk Factors" for the nature and amount of special items, and reconciliation of items designated as "excluding special items" to U.S. generally accepted accounting principles ("GAAP").
++ See the tables following "Safe Harbor/Risk Factors" for reconciliation of Automotive gross cash and operating-related cash flow to GAAP.
+++ Excluding special items and "Income/(Loss) attributable to non-controlling interests." See tables following "Safe Harbor/Risk Factors" for the nature and amount of these special items and reconciliation to GAAP.
Safe Harbor/Risk Factors
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
- Continued or worsening financial crisis;
- Further declines in industry sales volume, particularly in the United States or Europe, due to financial crisis, deepening recessions, geo-political events, or other factors;
- Decline in market share;
- Continued or increased price competition resulting from industry overcapacity, currency fluctuations, or other factors;
- A further increase in or acceleration of market shift away from sales of trucks, SUVs, or other more profitable vehicles, particularly in the United States;
- A return to elevated gasoline prices, as well as the potential for volatile prices or reduced availability;
- Lower-than-anticipated market acceptance of new or existing products;
- Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
- Adverse effects from the bankruptcy, insolvency, or government-funded restructuring of, change in ownership or control of, or alliances entered into by a major competitor;
- Restriction on use of tax attributes from tax law "ownership change";
- Economic distress of suppliers that may require us to provide financial support or take other measures to ensure supplies of components or materials and could increase our costs, affect our liquidity, or cause production disruptions;
- Single-source supply of components or materials;
- Labor or other constraints on our ability to restructure our business;
- Work stoppages at Ford or supplier facilities or other interruptions of supplies;
- Pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
- Inability to implement the Retiree Health Care Settlement Agreement regarding UAW hourly retiree health care;
- Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates or investment returns);
- Discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
- Increased safety, emissions, fuel economy, or other regulation resulting in higher costs, cash expenditures, or sales restrictions;
- Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
- A change in our requirements for parts or materials subject to long-term supply arrangements that commit us to purchase minimum or fixed quantities of parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts);
- Adverse effects on our results from a decrease in or cessation of government incentives;
- Adverse effects on our operations resulting from certain geo-political or other events;
- Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business, or refinance our debt;
- Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including secured debt);
- Failure of financial institutions to fulfill commitments under committed credit facilities;
- Ford Credit's need for substantial liquidity to finance its business;
- Inability of Ford Credit to obtain competitive funding;
- Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption, or other factors;
- A prolonged disruption of the debt and securitization markets;
- Higher-than-expected credit losses;
- Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
- Collection and servicing problems related to finance receivables and net investment in operating leases;
- Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;
- New or increased credit, consumer, data protection, or other regulation resulting in greater costs or financing restrictions;
- Inability to implement our plans to further reduce structural costs and increase liquidity.
We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. For additional discussion of these risks, see "Item 1A. Risk Factors" in our 2008 Form 10-K Report and subsequent Form 10-Q Reports.
THIRD QUARTER & FIRST NINE MONTHS 2009 NET INCOME/(LOSS) COMPARED WITH 2008 Third Quarter First Nine Months ------------- ----------------- 2008 2009 2008 2009 ---- ---- ---- ---- Revenue (Bils.) --------------- Revenue (Excluding Special Items) $31.7 $30.9 $109.1 $82.9 Special Items* - - 7.0 - -- -- --- -- Revenue $31.7 $30.9 $116.1 $82.9 ===== ===== ====== ===== Income (Mils.) -------------- Pre-Tax Results from Continuing Operations (Excluding Special Items) $(2,780) $1,107 $(3,127) $(1,299) Special Items* 2,207 108 (6,219) 3,265 ----- --- ------- ----- Pre-Tax Income/(Loss) from Continuing Operations $(573) $1,215 $(9,346) $1,966 (Provision for)/Benefit from Income Taxes 463 (139) 811 40 --- ----- --- -- Income/(Loss) from Continuing Operations $(110) $1,076 $(8,535) $2,006 Income/(Loss) from Discontinued Operations - - 9 5 -- -- -- -- Net Income/(Loss) $(110) $1,076 $(8,526) $2,011 Less: Income/(Loss) attributable to non-controlling interests 51 79 262 180 -- -- --- --- Net Income/(Loss) attributable to Ford $(161) $997 $(8,788) $1,831 ===== ==== ======= ======
* Special items detailed in Special Items tables below.
THIRD QUARTER & FIRST NINE MONTHS 2009 INCOME/(LOSS) FROM CONTINUING OPERATIONS COMPARED WITH 2008 Third Quarter First Nine Months ------------- ----------------- (in millions) 2008 2009 2008 2009 ---- ---- ---- ---- Pre-Tax Results from Continuing Operations (Excluding Special Items) $(2,780) $1,107 $(3,127) $(1,299) (Income)/Loss Attributable to Non-Controlling Interests (51) (79) (262) (180) (Provision for)/Benefit from Income Taxes applied to Pre-Tax Results from Continuing Operations (Excluding Special Items) (178) (155) (549) (78) ----- ----- ----- ---- After-Tax Result (Excluding Special Items) $(3,009) $873 $(3,938) $(1,557) Pre-Tax Special Items* $2,207 $108 $(6,219) $3,265 (Provision for)/Benefit from Income Taxes on Special Items 641 16 1,360 118 --- -- ----- --- Income/(Loss) from Continuing Operations Attributable to Ford $(161) $997 $(8,797) $1,826 ===== ==== ======= ====== (Provision for)/Benefit from Income Taxes applied to Pre-Tax Results from Continuing Operations (Excluding Special Items) $(178) $(155) $(549) $(78) (Provision for)/Benefit from Income Taxes on Special Items 641 16 1,360 118 --- -- ----- --- (Provision for)/Benefit from Income Taxes $463 $(139) $811 $40 ==== ----- ==== ===
* Special items detailed in Special Items tables below.
THIRD QUARTER SPECIAL ITEMS Income/(Loss) (in millions) ------------- Personnel and Dealer-Related Items: 2008 2009 ----------------------------------- ---- ---- Automotive Sector Ford North America Retiree health care and related charges $2,569 $(120) Personnel-reduction actions (197) (23) U.S. dealer actions (38) (13) Job Security Benefits 320 22 --- --- Total Ford North America 2,654 (134) Ford South America Personnel-reduction actions - (6) Ford Europe Personnel-reduction actions (40) (16) Ford Asia Pacific Africa Personnel-reduction actions (28) (6) Volvo Personnel-reduction actions (15) (3) U.S. dealer actions (11) - ---- --- Total Volvo (26) (3) Other Automotive Returns on assets held in the Temporary Asset Account ("TAA") (250) 93 ----- --- Total Personnel and Dealer-Related Items - Automotive sector 2,310 (72) Other Items: ------------ Automotive Sector Ford North America Accelerated depreciation related to AutoAlliance International, Inc. ("AAI") acquisition of leased facility (82) - Gain/(Loss) on sale of Automotive Components Holding , LLC ("ACH") plants (19) - ---- --- Total Ford North America (101) - Volvo Held-for-sale cessation of depreciation and related charges - 163 Other Automotive Gain on debt securities exchanged for equity 35 - Net gains on debt reduction actions - 8 - - Total Other Automotive 35 8 Jaguar Land Rover Sale-related/Other (37) - ---- --- Total Other Items - Automotive sector (103) 171 Financial Services Sector DFO Partnership - gain on sale - 9 --- --- Total $2,207 $108 ====== ==== Memo: Special Items Impact on Earnings Per Share* $1.25 $0.03 ===== =====
* Earnings per share for special items is calculated on a basis that includes pre-tax profit, provision for taxes, less income attributable to non-controlling interests and the effect of discontinued operations; additional information regarding the method of calculating earnings per share is available in the materials supporting the November 2, 2009 conference calls at www.shareholder.ford.com.
FIRST NINE MONTHS SPECIAL ITEMS Income/(Loss) (in millions) ------------- Personnel and Dealer-Related Items: 2008 2009 ----------------------------------- ---- ---- Automotive Sector Ford North America Retiree health care and related charges $2,680 $(408) Personnel-reduction actions (644) (292) U.S. dealer actions (primarily dealership impairments) (185) (105) Job Security Benefits 262 336 --- --- Total Ford North America 2,113 (469) Ford South America Personnel-reduction actions - (19) Ford Europe Personnel-reduction actions/Other (54) (160) Ford Asia Pacific Africa Personnel-reduction actions (40) (14) Volvo Personnel-reduction actions (38) (12) U.S. dealer actions (20) (1) ---- --- Total Volvo (58) (13) Other Automotive Returns on assets held in the TAA (250) 96 Mazda Impairment of dealer network goodwill (214) - ----- --- Total Personnel and Dealer-Related Items - Automotive sector 1,497 (579) Other Items: ------------ Automotive Sector Ford North America Fixed asset impairment charges (5,300) - Gain/(Loss) on sale of ACH plants (324) - Accelerated depreciation related to AAI acquisition of leased facility (82) - Ballard restructuring/Other (70) - ---- --- Total Ford North America (5,776) - Ford Europe Investment impairment and related charges - (100) Volvo Held-for-sale impairment - (650) Held-for-sale cessation of depreciation and related charges - 290 --- --- Total Volvo - (360) Other Automotive Liquidation of foreign subsidiary - foreign currency translation impact - (281) Gain on debt securities exchanged for equity 108 - Net gains on debt reduction actions - 4,663 - ----- Total Other Automotive 108 4,382 Jaguar Land Rover Sale-related/Other* 38 3 --- --- Total Other Items - Automotive sector (5,630) 3,925 Financial Services Sector DFO Partnership impairment - (141) Ford Credit net operating lease impairment charge (2,086) - DFO Partnership - gain on sale - 9 Gain on purchase of Ford Holdings debt securities - 51 --- --- Total Other Items - Financial Services sector (2,086) (81) ------- ---- Total $(6,219) $3,265 ======= ====== Memo: Special Items Impact on Earnings Per Share** $(2.17) $1.15 ====== =====
* Jaguar Land Rover's revenue of $7 billion and wholesales of 125,000 units were treated as special items in the first nine months of 2008.
** Earnings per share for special items is calculated on a basis that includes pre-tax profit, provision for taxes, less income attributable to non-controlling interests and the effect of discontinued operations; additional information regarding the method of calculating earnings per share is available in the materials supporting the November 2, 2009 conference calls at www.shareholder.ford.com.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE GROSS CASH (in billions) Sep 30, 2009 B/(W) Memo: Dec 31, Sep 30, Dec 31, Memo: Sep June 30, 2008 2009 2008 30, 2008 2009 ------- ------- ------- --------- ----- Cash and Cash Equivalents $6.4 $10.1 $3.7 $10.6 $11.9 Marketable Securities 9.3 14.6 5.3 11.5 9.7 Loaned Securities - - - - - - - - - - Total Cash/Marketable & Loaned Securities $15.7 $24.7 $9.0 $22.1 $21.6 Securities-In-Transit * - (0.2) (0.2) (0.7) (0.2) UAW-Ford TAA/Other (2.3) (0.7) 1.6 (2.5) (0.4) ----- ----- --- ----- ----- Gross Cash $13.4 $23.8 $10.4 $18.9 $21.0 ===== ===== ===== ===== =====
* The purchase or sale of marketable securities for which the cash settlement was not made by period-end and for which there was a payable or receivable recorded on the balance sheet at period-end.
U.S. GAAP RECONCILIATION OF AUTOMOTIVE OPERATING-RELATED CASH FLOWS* (in billions) 2009 ---- First Third O/(U) Nine O/(U) Quarter 2008 Months 2008 --------- ----- -------- ----- Cash Flows from Operating Activities of Continuing Operations** $3.0 $8.6 $0.8 $8.0 Items Included in Operating-Related Cash Flows: Capital Expenditures (1.0) 0.8 (3.4) 1.3 Net Transactions Between Automotive and Financial Services Sectors (0.4) (0.3) (1.3) 0.1 Net Cash Flows from Non-Designated Derivatives (0.1) (0.4) (0.1) (1.2) Items Not Included in Operating-Related Cash Flows: Cash Impact of Job Security Benefits & Pers. Reduction Program 0.2 - 0.7 0.2 Pension Contributions 0.1 - 0.8 (0.1) Tax Refunds and Tax Payments from Affiliates (0.2) (0.2) (0.5) 0.4 Other** (0.3) 0.5 (0.4) 0.2 ----- --- ----- --- Operating-Related Cash Flows $1.3 $9.0 $(3.4) $8.9 ==== ==== ===== ====
* Except where noted (see below) 2008 data excludes Jaguar Land Rover
** 2008 includes Jaguar Land Rover
SOURCE Ford Motor Company
This story originally appeared at The Car Connection
J.D. Power Says Things Are Becoming Less Terrible
Vaguely good news from J.D. Power and Associates this morning: car sales are slightly less abysmal! To be sure, retail sales are down from 2008, and July 2009 retail sales are on-track to clock in 4% below June. However, fleet sales are up, so everything balances out, and the seasonally adjusted annualized rate remains at a low-but-manageable 10 million units. At least that's what we think J.D. is saying. You know, math is hard. [PRNewswire]
This story originally appeared at The Car Connection
Luxury No Defense Against Weak Market, But Germans Cautiously Optimistic
Hyper-luxury European car brands like Rolls-Royce are seeing steady sales, but their more attainable counterparts - BMW, Audi, Mercedes-Benz - are still riding a downward slope through May. But all is not yet lost, as there may be an end in sight.
BMW's Ian Robertson, the company's board member in charge of sales and marketing, says that May's sales drop of 18% is a good sign. "Sales decreased much more slowly in May than in recent months," he said in a statement. "Overall, I am cautiously optimistic that our global sales figures will continue to improve over the course of the year."
Audi and Mercedes-Benz are also down less in May than through the first part of the year, with Audi losing 6% in sales against 2008 and Mercedes falling 12%, compared to year-to-date shortfalls of 12% and 22%, respectively.
Does this mean that the industry - or at least the luxury segment - is nearing the bottom of the trough, and an upswing is in sight? Or is it merely a blip on the continued sales tailspin?
Only time will tell, but in the meantime, Audi will be taking the industry as it comes - despite the overall decrease in sales, Audi is seeing a rise in market share, drawing to within 4,000 units of Mercedes-Benz production and within 8,000 of BMW in May.
This story originally appeared at The Car Connection
Mazda’s February Japanese Sales, Export Volume Drop
Mazda today announced that its total domestic (Japanese) sales volume decreased 35.7 percent for February compared to that month one year ago. They didn't mention North American sales numbers, but noted that February exports of passenger and commercial vehicles decreased 63.8 percent year-on-year.
Steep declines in auto sales hardly rank as a surprise right now, with an industry-wide decline of about 40 percent for U.S. car sales in 2008. In Japan, sales and profits imploded in the country's third quarter '08 (which ended September 31); Honda reported a 90 percent profit tumble for the period.
Hopefully the promising new Mazda3, efficiency-themed innovation like the company's proprietary engine stop/start (SISS), and the industry's smallest catalytic converters (which use about 70 percent less semi-precious metal, reducing cost) will help Mazda weather this market and quickly regain healthy sales once the market and buyers' finances stabilize.
This story originally appeared at The Car Connection
