Ford sells less...loses less

Ford reports that it loss less this year than last year. It's a big improvement. Last year they lost $1.4 Billion for first quarter 06. They lost only $282 million during the first quarter '07. And it reports a slight increase in overall revenues.

Great! you say.

Um....hold on.

“This has been an encouraging quarter for the company,” said Alan R. Mulally, the chief executive, “but turning around the business will not be a quick or easy process.”

No. It won't be easy.

In North America, the focus of the restructuring plan, Ford lost $614 million from automotive operations, $172 million more than a year ago, because of lower sales of its most profitable vehicles. Ford and other automakers make the most money on sport utility vehicles and pickup trucks, which have fallen out of favor for many consumers amid high gas prices. Revenue from North America was $18.2 billion, down from $19.8 billion.

Yes. It could get lengthy.

When you're an American automotive manufacturer and your overall losses decline as you sell less of your product in the American markets,

When your sales drop 9% in the North American markets but your losses from those sales grow by over 20%....

When you achieve the above despite laying off 30,000+ workers in your North American factories...

When you now have more workers outside the US than within it...

When your high-end domestic models aren't wanted any more (Could it be that no one can recognize them or they're gas guzzling SUVs...Nah.)

When your Premiere Auto Group (Aston Martin, Jaguar, Land Rover and Volvo) nearly triples its profits from a year ago (and it's reported you're planning to sell that division!!!)

When your car-selling divisions outside the US are the ones generating profits...

When it's not your cars that make money but your credit division...

Then um...turning around the business will not be a quick or easy process.

Or maybe it will be. Numbers like these make the decisions sound inevitable. If you lose less by selling less, then selling nothing makes you a lot more money. And management will take the credit for the turnaround after it's over, but not the responsibility for its need.