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GasBuddy News Article


Ford Foiled by $4 Gasoline After 1st-Quarter `Mirage'
Wednesday, July 23, 2008
Bloomberg -- July 23 (Bloomberg) -- Ford Motor Co.'s turnaround plan has been derailed by $4-a-gallon gasoline, dashing investor hopes raised after Chief Executive Officer Alan Mulally produced a surprise first-quarter profit.

Tomorrow he's expected to report a second-quarter loss of 25 cents a share, the average of 12 analyst estimates compiled by Bloomberg, on plunging sales of pickup trucks and sport-utility vehicles. The forecasts exclude what the world's third-biggest automaker calls one-time costs. A year earlier, Ford had a profit on that basis of $258 million, or 13 cents.


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JT
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Message Posted: 7/23/2008 9:55:55 AM  Ignore JT Report Abuse
Wednesday, July 23, 2008
Bloomberg -- July 23 (Bloomberg) -- Ford Motor Co.'s turnaround plan has been derailed by $4-a-gallon gasoline, dashing investor hopes raised after Chief Executive Officer Alan Mulally produced a surprise first-quarter profit.

Tomorrow he's expected to report a second-quarter loss of 25 cents a share, the average of 12 analyst estimates compiled by Bloomberg, on plunging sales of pickup trucks and sport-utility vehicles. The forecasts exclude what the world's third-biggest automaker calls one-time costs. A year earlier, Ford had a profit on that basis of $258 million, or 13 cents.

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REPLIES (newest first)
POLELANE
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Ohio

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Message Posted: 7/24/2008 1:24:17 PM  Ignore POLELANE Report Abuse
one time costs; year after year after year...
DFleming
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Alberta

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Message Posted: 7/24/2008 9:51:38 AM  Ignore DFleming Report Abuse
I'm surprised that they don't have a hybrid version of their F-Series pickup truck ready to roll out. It's been their best selling vehicle for years. The only thing that could have dethrone that was higher gas prices. It's surprising to me that they didn't think about protecting their star seller.
Don20
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Oklahoma City

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Message Posted: 7/24/2008 9:50:39 AM  Ignore Don20 Report Abuse
When they build vehicles that people want, instead of tell us what we want. They may make a profit.. Pickup and big vehicles are history unless you have a business.
jeepster23
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Massachusetts

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Message Posted: 7/24/2008 9:46:40 AM  Ignore jeepster23 Report Abuse
Boy if they didn't see this coming, they should get jobs washing dishes.
goose28in
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Michigan

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Message Posted: 7/24/2008 9:46:35 AM  Ignore goose28in Report Abuse
Ford will be retooling one of their Michigan plants from the Exploder to smaller Europenan vehicles, 5 models that will be sold here in the states.
Shiff
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Pennsylvania

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Message Posted: 7/24/2008 9:44:46 AM  Ignore Shiff Report Abuse
Ford has always tried to sell larsger cars and trucks and refused to accept the fact that the market has changed.
maddie01
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Boston

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Message Posted: 7/24/2008 9:39:26 AM  Ignore maddie01 Report Abuse
consumers change their minds faster than Detroit can change
bauerboy
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Seattle

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Message Posted: 7/24/2008 9:36:19 AM  Ignore bauerboy Report Abuse
Ford posted bigger losses than analysts expected. No one buying their bigger cars and they didn't plan well enough ahead.
Phantomwalker
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Nova Scotia

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Message Posted: 7/24/2008 9:36:06 AM  Ignore Phantomwalker Report Abuse
The big guys have to realize that as long as they make less efficent vechiles that it will hurt their bottom line.
AuburnTim
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Indiana

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Message Posted: 7/24/2008 9:34:45 AM  Ignore AuburnTim Report Abuse
Won't be long till Ford and GM ask the government for a bail out. We need to let these companies reap what they sow. If they were dumb enough not to make cars that people wanted and that got better fuel mileage then they deserve what they get. To bad their employees are the ones that will pay the biggest price by losing their jobs. I say enough is enough mandatory 50mpg or more should be forced on all new cars, trucks made as of today. Just wonder how much less Ford and GM's executives are losing out of their wallets....I bet nothing!
EarlyMoose
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Seattle

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Message Posted: 7/24/2008 9:34:40 AM  Ignore EarlyMoose Report Abuse
let the market decide what the consumers want.
Howmuchtofillit
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Trenton

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Message Posted: 7/24/2008 9:33:41 AM  Ignore Howmuchtofillit Report Abuse
Well keep building those Big SUVs. Maybe you will learn, but I don't think so.
HockeyLady
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New Jersey

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Message Posted: 7/24/2008 9:33:20 AM  Ignore HockeyLady Report Abuse
It will be intereting now to see how all car manufacturers adjust. I do want Ford to succeed!
UTOrangeMan
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Atlanta

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Message Posted: 7/24/2008 9:31:16 AM  Ignore UTOrangeMan Report Abuse
Wow. I bought a Honda after owning 7 Fords over the last 32 years.
RC_RACER
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Tacoma

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Message Posted: 7/24/2008 9:31:10 AM  Ignore RC_RACER Report Abuse
thats what you get for taking money to supress high milage vehicles. I rally feel sorry for the car company's.. NOT
JB1881
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New Mexico

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Message Posted: 7/24/2008 9:29:22 AM  Ignore JB1881 Report Abuse
maybe they need to look at hybrids?
woos777
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Washington

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Message Posted: 7/24/2008 9:29:15 AM  Ignore woos777 Report Abuse
Very few people aren't foiled by high gas prices.
PokerAce
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Louisiana

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Message Posted: 7/24/2008 9:28:35 AM  Ignore PokerAce Report Abuse
roadkillGA..... I'll bet ol Ben could sell just about anything.... amusing image though..... good thing Ford did well on revamping the Mustang or they'd really be in the muck.....
Wolfwings
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Delaware

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Message Posted: 7/24/2008 9:26:47 AM  Ignore Wolfwings Report Abuse
Call me stupid, but, as I remember it, all the car makers were paying big bucks to PACs to put off the LAW about cutting back on gasoline usage. Now they will want goverment assistance to help them in their time of loss.
Chazzer
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Nevada

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Message Posted: 7/24/2008 9:26:45 AM  Ignore Chazzer Report Abuse
Of course they were foiled ... just like all of the other car makers were!
bluebird1
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Toronto

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Message Posted: 7/24/2008 9:24:04 AM  Ignore bluebird1 Report Abuse
Lack of foresight...or even common sense lead to this with NA manuf.
Already announced this morning...caught it on TV & believe they said 6 billion
Dale Jr.
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Iowa

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Message Posted: 7/24/2008 9:23:41 AM  Ignore Dale Jr. Report Abuse
Oh no. What to do.
Lonewolftx
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Houston

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Message Posted: 7/24/2008 9:21:55 AM  Ignore Lonewolftx Report Abuse
And so it goes . . .
tbybee
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Omaha

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Message Posted: 7/24/2008 9:20:57 AM  Ignore tbybee Report Abuse
Diversification is a good idea in all things including product offerings.
SlugBuggy
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Colorado Springs

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Message Posted: 7/24/2008 9:20:16 AM  Ignore SlugBuggy Report Abuse
Yeah, I can't say I'm overly saddened at the loss of the SUVs. They were a bad idea to begin with and it's only the rising costs of fuel that have convinced folks of that.

[Edited by: SlugBuggy at 7/24/2008 10:20:47 AM EST]
siouxbear
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Ontario

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Message Posted: 7/24/2008 9:19:33 AM  Ignore siouxbear Report Abuse
we all are in this together! we need to get more productive
roadkillGA
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Georgia

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Message Posted: 7/24/2008 9:19:10 AM  Ignore roadkillGA Report Abuse
We have thrown more gas away than the Exxon spill a few years back by being exolited by sales and enjoying Navigators, Excursions, Hummers and the like. If you NEED a truck for business its one thing but we have gotten into the belief that car and truck sales were in the Constitution..can you see ben Franklin selling F-1500"s
kevski
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Oregon

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Message Posted: 7/24/2008 9:18:50 AM  Ignore kevski Report Abuse
bummer
BrianGriffin
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Victoria

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Message Posted: 7/24/2008 9:18:48 AM  Ignore BrianGriffin Report Abuse
Boo hoo
tz2001
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Virginia

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Message Posted: 7/24/2008 9:17:55 AM  Ignore tz2001 Report Abuse
Bye, Bye SUVs. Good Riddance.
eaglev
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Oklahoma City

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Message Posted: 7/24/2008 9:16:58 AM  Ignore eaglev Report Abuse
The Unions have pushed the pay and benefits so high that it is hard for them to make a profit.
FizedNH
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New Hampshire

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Message Posted: 7/24/2008 9:16:36 AM  Ignore FizedNH Report Abuse
Gotta go with low gas consumption models...
SeerLV
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Las Vegas

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Message Posted: 7/24/2008 9:15:42 AM  Ignore SeerLV Report Abuse
Ford and the others made too much money on the gas guzzlers. Now they are paying the price for lack of future planning.
tomok
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Portland

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Message Posted: 7/24/2008 9:14:58 AM  Ignore tomok Report Abuse
The big 3 - For, GM, and Chrysler.
Produce more fuel efficient vehicles (high MPG) and reliable ones too. And maybe, just maybe they can enjoy high profits too...
SpruceGuse2
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Michigan

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Message Posted: 7/24/2008 9:14:48 AM  Ignore SpruceGuse2 Report Abuse
Good for the Stock Market.
amacquarrie
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Nevada

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Message Posted: 7/24/2008 9:08:58 AM  Ignore amacquarrie Report Abuse
maybe they should be more proactive and come up with a non gas guzzling truck.
t4204life
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Ohio

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Message Posted: 7/24/2008 9:08:27 AM  Ignore t4204life Report Abuse
everybody but the oil companies,is struggling to make a profit.
good2goVA
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Virginia

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Message Posted: 7/24/2008 9:08:02 AM  Ignore good2goVA Report Abuse
The American companies enjoyed gas guzzlers and now it is biting them at the bottom line. Unfortunately, Toyota and Honda are leading the pack and not the American companies. Hopefully soon that will turn around but some major changes need to occur and occur pretty quickly for that to happen.
Somis1
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Ventura

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Message Posted: 7/24/2008 9:07:25 AM  Ignore Somis1 Report Abuse
It could be worse for Mulally--at least he's not running an airline.
mikespipe
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New York

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Message Posted: 7/24/2008 9:06:51 AM  Ignore mikespipe Report Abuse
ford was derailed by living in the past. never thinking that gas would rise in cost despite all the signs around the world . when it happened in the 70's they where just as surprised. but did not take in the lesson. with the rise in gas costs there are an abundance of good underused over accessorised trucks out there for sale as used. this will affect sales for years. better more energy efficient vehicle are the only thing that will bring them back to profitability. Will they do it ?
R1Zak
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San Diego

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Message Posted: 7/24/2008 9:04:15 AM  Ignore R1Zak Report Abuse
Companies like Ford have always been more concerned with profit than product. The F150 was the best selling vehicle because of incentives. Ford's parts also maybe the most expensive in the business, excluding high end manufacturers. In the end like any business Ford has always been about profit. Even at the cost of their reputation. Don't expect ford to lead the way on anything. GM has always been the one of the big three to do that.
Brn2bEvl
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New York

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Message Posted: 7/24/2008 9:02:47 AM  Ignore Brn2bEvl Report Abuse
How the mighty have fallen.
RickPenn
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Texas

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Message Posted: 7/24/2008 9:02:38 AM  Ignore RickPenn Report Abuse
Announced this morning. 6.? billion dollar loss last quarter.
Dennis783
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Wisconsin

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Message Posted: 7/24/2008 8:59:23 AM  Ignore Dennis783 Report Abuse
Too bad for Ford. Better respond quicker in the future
Egaser
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Atlanta

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Message Posted: 7/24/2008 8:56:56 AM  Ignore Egaser Report Abuse
Their road is a very long One.
no1lakersfam
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Virginia Beach

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Message Posted: 7/24/2008 8:55:10 AM  Ignore no1lakersfam Report Abuse
Why aren't they working on developing more hybrid vehicles? I only know of one that they offer right now, and if they offered it in smaller cars, I think they would be able to help themselves out of the hole they are in.
tobasco
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Los Angeles

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Message Posted: 7/24/2008 8:54:01 AM  Ignore tobasco Report Abuse
But an F-150 is cheap now.
mrsports007
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Raleigh

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Message Posted: 7/24/2008 8:53:47 AM  Ignore mrsports007 Report Abuse
i agree ford needs to get greener but they will be alright. plus ford has started to make better cars to compete with the foreign automakers.
rbdesigns
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Modesto

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Message Posted: 7/24/2008 8:53:40 AM  Ignore rbdesigns Report Abuse
I don't care directly about the company, but it worries me about the employees. They need to go smaller and do it quickly.
lazycar
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Los Angeles

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Message Posted: 7/24/2008 8:53:39 AM  Ignore lazycar Report Abuse
Guess they need to import more Fords made in Europe & Brazil! Or just make those types of Fords here! Like the Focus came from Ford of Germany.
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