Ford posts an $8.7 billion dollar loss for the second quarter

Just when it looked bad for the American auto industry, it starts to look worse. Ford Motor Company reported a net loss of $8.7 billion for the second quarter of 2008. Let me write that again: an $8.7 billion loss for a single quarter. Oh, sure there were the typical write-downs and other excuses, but it still represents a staggering loss for one of the US's biggest manufacturers and employers. And what is to blame? According to the Ford press release, "Because of deteriorating economic conditions, demand has declined substantially, particularly in North America. At the same time, fuel and commodity prices have increased substantially. As a result, there has been a significant shift away from large pickup trucks and traditional SUVs in North America. This prompted a review of our long-lived North American assets and Ford Credit operating lease portfolio, which led to the pre-tax non-cash impairment charges."

When all else fails, blame the SUV.

Photo © Jason Fogelson