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Ford Loses Just $1.4B, Turns Down Treasury Money

Automaker burns through cash but remains healthier than rivals

By Jason Farago, Newser Staff

Posted Apr 24, 2009 6:49 AM CDT

(Newser) – Ford announced today a loss of $1.4 billion for the first three months of 2009—its worst Q1 result in 17 years, but nevertheless one that beat expectations, Bloomberg reports. The automaker said it expected to break even or possibly turn a profit in 2011, and it would not seek any loans from the government as its rival Chrysler prepares for bankruptcy. Ford acknowledged today that it burned through $3.7 billion in cash as the auto crisis deepened.

Although Ford lost a record $14.7 billion in 2008, it has been able to refuse government aid because it took out $23 billion in loans several years ago. The company may pick up business as Chrysler and GM remain in limbo, and sales should increase in South America and Europe, where governments are encouraging citizens to trade in old models. "Ford is doing a good job of managing through this crisis, but they’re not out of the woods yet," says one investor.

[Images (4)]

[Videos (1)]

The company sign hangs over an unsold 2009 Escape on display at a Ford dealership in Denver on Sunday, Jan. 4, 2009. (AP Photo/David Zalubowski)

A worker prepares Ford's presentation of new cars at the Shanghai International Auto Show on its opening day, Monday, April 20, 2009 in Shanghai, China. (AP Photo/Eugene Hoshiko)

The blue oval logo of Ford Motor Company sits on the crosshatched grille of an unsold 2008 F-150 pickup truck at a Ford dealership in the southeast Denver suburb of Centennial, Colo. (AP Photo/David Zalubowski, file)

Snow falls near a Ford dealership, Tuesday, Feb. 3, 2009, in Cincinnati. (AP Photo/Al Behrman)

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Bill Ford, chairman of Ford Motor Company, speaks to Larry King on Tuesday. (CNN Video)

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Ford Loses Just $1.4B, Turns Down Treasury Money