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Shocker: Ford Sales Up 30% in December
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by studemaxWhy shock? Doesn't surprise me at all.
The American people may be dumb, but they're not stupid.
My only other question: since Ford is still losing money on every car they sell, isn't it actually bad news to be selling more cars then?www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by dieselgeek
My only other question: since Ford is still losing money on every car they sell, isn't it actually bad news to be selling more cars then?
Excluding special items, Ford posted pre-tax operating profits totaling $1.1 billion, an improvement of $3.9 billion from a year ago. This marks the company?s first operating profit since the first quarter of 2008. On an after-tax basis, excluding special items, Ford posted an operating profit of $873 million in the third quarter, or 26 cents per share, compared with a loss of $3 billion, or $1.32 per share, a year ago.
Ford?s North American operations posted a pre-tax operating profit of $357 million, its first quarterly profit since the first quarter of 2005. Ford South America, Ford Europe and Ford Asia Pacific Africa also posted pre-tax operating profits in the third quarter.
Moreover, your quip indicates a profound misunderstanding of the relationship between fixed costs and variable costs in the automotive business. To simplify, fixed costs are costs that a carmaker generally has regardless of how many units they build and sell. Variable costs are costs that vary (not always in a linear relationship) with the number of vehicles built and sold.
So if an OEM is losing money on the variable cost of its products and sufficient extra units cannot be sold for sufficient revenue to cover the increased variable costs, then selling more units would increase losses. Of course, in some cases "loss leaders" are necessary for other purposes (e.g. Corporate Average Fuel Economy offsets, holding market share, brand integrity, corporate citizenship, niche development, cash flow, supplier contracts, maintaining the supplier base)
But selling more vehicles usually spreads the fixed costs out across all of the sales. Thus, more sales tends to mean each unit sold has to bear a smaller percentage of the fixed costs.
Every carmaker has a "break even" point where, when factoring in the variable costs, the OEM can recover its entire fixed and variable investment through vehicle sales. Any revenue above that level is some form of profit.
Undoubtedly the foregoing oversimplification is abhorant to any accounting types who have mistakenly wandered in here, but kiddies, that's basically the whole ball of wax in laypersons' terms.
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Re: Shocker: Ford Sales Up 30% in December
Yeah, sure, whatever. They're "making money" once you consider Adjustments, Restructuring, and factor EBITDA.
I may not have worked in the marketing department like you, but I've spent more than my share of time in big public companies and I am capable of comprehending the difference between "actually making money" and "lots of acronyms so we can tell the shareholders and press we're sorta making money"
How many quarterly losses has Ford posted in the past ten years? Uh, yeah, that's what I thought :
Call it a "quip" if you want, but I'm not the one blathering 3 million paragraphs of senseless Pro-Ford blather every time someone points out a Ford problem.www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
No but your the first to bash them when they do good. A profit is a profit and they're still the only American company that didn't suck off the government teet. Way to go Ford.I R Bob
You can't drink all day unless you start in the morning!
2007 LH, 2008 LH, 2009 LH, 2010 LH, 2011 LH, 2012 DNF/BLOW'D UP, 2013 LH, 2014 LH
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by BluLightningNo but your the first to bash them when they do good. A profit is a profit and they're still the only American company that didn't suck off the government teet. Way to go Ford.
Yay for Ford, they're still here, but they're not out of the woods. That's all that needs said about their current state. see how simple that was?www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by dieselgeekOriginally posted by BluLightningNo but your the first to bash them when they do good. A profit is a profit and they're still the only American company that didn't suck off the government teet. Way to go Ford.
Yay for Ford, they're still here, but they're not out of the woods. That's all that needs said about their current state. see how simple that was?
Thank you soooo much for pointing out how stupid we are all and how wrong we were to be happy about something(again). :
Go Ford go!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by Mr4Speed
Thank you soooo much for pointing out how stupid we are all and how wrong we were to be happy about something(again). :www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by dieselgeekas Nutzzter implies,
Originally posted by dieselgeek
you missed my question, is Franklin a "Troll" by your definition? I'd like a reference or two because I don't remember him calling anyone names"Somewhere the zebra is dancing". Garth Stein's The art of racing in the rain.
Matt
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by PumpkinOriginally posted by dieselgeekas Nutzzter implies,
Originally posted by dieselgeek
you missed my question, is Franklin a "Troll" by your definition? I'd like a reference or two because I don't remember him calling anyone nameswww.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by PumpkinOriginally posted by dieselgeekas Nutzzter implies,
Originally posted by dieselgeek
you missed my question, is Franklin a "Troll" by your definition? I'd like a reference or two because I don't remember him calling anyone namesI R Bob
You can't drink all day unless you start in the morning!
2007 LH, 2008 LH, 2009 LH, 2010 LH, 2011 LH, 2012 DNF/BLOW'D UP, 2013 LH, 2014 LH
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Re: Shocker: Ford Sales Up 30% in December
to hell with reality, let's celebrate anyways! :Dwww.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!
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Re: Shocker: Ford Sales Up 30% in December
Originally posted by dieselgeekOriginally posted by PumpkinOriginally posted by dieselgeekas Nutzzter implies,
Originally posted by dieselgeek
you missed my question, is Franklin a "Troll" by your definition? I'd like a reference or two because I don't remember him calling anyone namesI R Bob
You can't drink all day unless you start in the morning!
2007 LH, 2008 LH, 2009 LH, 2010 LH, 2011 LH, 2012 DNF/BLOW'D UP, 2013 LH, 2014 LH
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