The Briefing Room
General Category => Economy/Business => Topic started by: Suppressed on October 11, 2018, 01:45:17 am
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Ford announces plan to lay off workers after tariffs cost them $1B
Yahoo View • October 9, 2018
The economy remains strong, but are we starting to see the first signs of stalling? Stephanie Ruhle is joined by Politico’s Ben White to discuss Ford’s plan to lay off workers after they say President Trump’s tariffs have cost them a billion dollars.
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https://www.yahoo.com/entertainment/ford-announces-plan-lay-off-083519387.html (https://www.yahoo.com/entertainment/ford-announces-plan-lay-off-083519387.html)
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More BS on impact of tariffs.
Ford profit was up 65% in 2017 at $7.6bn, so it was already in very heady territory before the 2018 year. https://www.detroitnews.com/story/business/autos/ford/2018/01/24/ford-annual-earnings/109777880/ (https://www.detroitnews.com/story/business/autos/ford/2018/01/24/ford-annual-earnings/109777880/)
Ford had already announced prior to most tariffs rolled out that profits were declining. Among the reasons was a fire from a key parts supplier which heavily hurt sales of its trucks, and that its China operations were weak due to poor strategies on top selling SUVs and crossovers.
https://www.reuters.com/article/us-autos-results-ford-motor/ford-cuts-2018-profit-forecast-tariffs-china-sales-hurt-second-quarter-idUSKBN1KF2UT (https://www.reuters.com/article/us-autos-results-ford-motor/ford-cuts-2018-profit-forecast-tariffs-china-sales-hurt-second-quarter-idUSKBN1KF2UT)
Bottom line is Ford has relied too much to make money out a single item, the F150 truck and it is now paying the price of it poor strategy.
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Bottom line is Ford has relied too much to make money out a single item, the F150 truck and it is now paying the price of it poor strategy.
Hey! This guy wins the cigar for dispelling this Tariffs Hurt Ford meme. I am seeing sick and poorly structured companies all over the place that had serious problems prior to Trump blaming the tariffs on them laying off and going overseas. I am guessing no one noticed that prior to the tariffs Ford announced they were ending production of passenger cars. That surrender to imports alone shows that Ford is a one trick pony anymore. They are basically the same as International Harvester was in the 70's....
(https://i.pinimg.com/originals/f3/65/3d/f3653d3508ac14c64b10bbe9285c9bec.jpg)
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Well, appears Ford has other causes of why their profit is declining. They are terrible in China, even while competitors are are down but not as significantly.
http://www.gopbriefingroom.com/index.php/topic,336335.msg1820410.html#msg1820410 (http://www.gopbriefingroom.com/index.php/topic,336335.msg1820410.html#msg1820410)
Volkswagon sales was off 10.5%
GM sales was down 14.9%
Ford sales were down 43%
China accounts for 25% of worldwide auto sales, so that is important for profit of an automaker.
98% of all the cars sold by Ford in China are manufactured in China. So tariff effect is not here in any fashion.
Just poor strategies. How about the leadership?
Appears the CEO Ford selected just 17 months ago is not too up on automaking anyway as he has no background on that.
https://en.wikipedia.org/wiki/James_Hackett_(businessman) (https://en.wikipedia.org/wiki/James_Hackett_(businessman))
His claim to fame was interim athletic director at Michigan and hired Jim Harbaurgh. Quite the pedigree to oversee a major auto firm the next year. after he left that position.
Wonder if that might be a reason for Ford's rapid decline in profitability?
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Michigan Watchdog
Tyler Arnold
Oct. 11, 2018
Multiple media reports have blamed Ford’s latest announcement of layoffs on President Donald J. Trump’s tariffs. A Ford spokesperson told Watchdog.org, however, that this is a mischaracterization. The latest job reduction will be for salaried employees, not manufacturing employees, and is a restructuring unrelated to the tariffs.
“The reports you have read about our organization redesign work being related to external forces such as tariffs are incorrect,†Ford Motor Company spokesperson Karen Hampton told Watchdog.org.
“This is a global effort and not specific to the U.S.,†she added. “We began this effort recently as part of our CEO’s work to make us a faster, more nimble, more innovative company.â€
More... https://www.watchdog.org/michigan/ford-refutes-media-claim-that-trump-tariffs-caused-layoffs/article_0323e6a4-cd96-11e8-b2f7-b7367c6120d2.html (https://www.watchdog.org/michigan/ford-refutes-media-claim-that-trump-tariffs-caused-layoffs/article_0323e6a4-cd96-11e8-b2f7-b7367c6120d2.html)
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Michigan Watchdog
Tyler Arnold
Oct. 11, 2018
Multiple media reports have blamed Ford’s latest announcement of layoffs on President Donald J. Trump’s tariffs. A Ford spokesperson told Watchdog.org, however, that this is a mischaracterization. The latest job reduction will be for salaried employees, not manufacturing employees, and is a restructuring unrelated to the tariffs.
“The reports you have read about our organization redesign work being related to external forces such as tariffs are incorrect,†Ford Motor Company spokesperson Karen Hampton told Watchdog.org.
“This is a global effort and not specific to the U.S.,†she added. “We began this effort recently as part of our CEO’s work to make us a faster, more nimble, more innovative company.â€
More... https://www.watchdog.org/michigan/ford-refutes-media-claim-that-trump-tariffs-caused-layoffs/article_0323e6a4-cd96-11e8-b2f7-b7367c6120d2.html (https://www.watchdog.org/michigan/ford-refutes-media-claim-that-trump-tariffs-caused-layoffs/article_0323e6a4-cd96-11e8-b2f7-b7367c6120d2.html)
Thanks for link.
There are several around these threads who immediately pounce on the mantra 'Tariffs kill - Trump is killing the automotive industry' without any substantive data, just knee-jerk.
Even Ford itself knows better.
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Thanks for link.
There are several around these threads who immediately pounce on the mantra 'Tariffs kill - Trump is killing the automotive industry' without any substantive data, just knee-jerk.
Even Ford itself knows better.
I didn't believe it because I didn't believe the tariffs had been in effect for long enough to cause that loss. I thought Ford was attempting a foolish excuse for poor performance.