Tuesday, June 21, 2005

Ford lowers earnings and cuts jobs

Well looks like Ford is being hit by the same thing that is hitting GM. They are also suspending matching grants to 401K grants to salaried workers and cutting another 1000 salaried postions. Actually this is what they need to be focusing on:

Both Ford and its larger cross-town rival General Motors Corp. (GM.N: Quote, Profile, Research) have been reeling this year from a dramatic slowdown in sales of their mid- and large-size sport utility vehicles. The fuel-thirsty SUVs, former profit engines for Detroit's automakers, have entered the slow lane of the U.S. vehicle market as consumer sentiment changes in the face of high gasoline prices.

They should be trying to really try to become the leader in hybrid cars. It seems Toyota is already throwing big bucks behind them and they are selling like crazy. But it seems Ford is just going to cut jobs and complain that the unions are too powerful while they ignore what the consumer wants. Oh well, at least they aren't cutting back on their NASCAR spending.

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