I'm confused. Haven't we known for decades that, with the majority of the oil we use coming from overseas, we were perched atop a banana peel that could bring us down any day? Why, then, are the automobile manufacturers just now scrambling to lop heads, cut production, retool plants, and provide the public with cars that will never need a fill-up?
Fully $8 billion of the company's loss involved write-offs and write-downs reflecting the plummeting value of its plants, its lease portfolio, and some of its other assets. That means that, if you back out those cuts, rather than its reported loss of $3.88 per share, the company "only" lost $0.62 a share. Turns out the dart-throwers who follow the company had been looking for a per-share loss closer to $0.27. Why bother, guys?
Of course, Ford isn't alone in its automotive misery. In fact, a mixed bag of Daimler AG
So there you have it. In a word, a mess. Unless crude prices continue to trickle lower and find a home at much reduced levels, I don't think it's outlandish to suggest that Ford's situation appears precarious. And that will be the case at least until it can begin cranking out its more fuel-efficient models from here in the ol' U.S. of A. The investment implications of those circumstances are obvious.
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Fool contributor David Lee Smith has a couple of cars, but no shares in the companies mentioned. He does welcome your questions or comments. The Fool has a disclosure policy that purrs along in any gear.