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Ford Sells Wixom Plant for Energy Projects

As many as 4,000 jobs could be created.

by on Sep.10, 2009

The redevelopment plan is expected to create more than 4,000 direct jobs, including local suppliers, as well as support thousands of indirect jobs

The redevelopment plan is expected to create more than 4,000 direct jobs, including local suppliers, as well as support thousands of indirect jobs

Ford Motor Company’s idled Wixom Assembly Plant will be redeveloped into one of the nation’s largest renewable energy manufacturing parks, Chairman Bill Ford said.

Ford announced that the automaker has reached an agreement in principle to sell Wixom Assembly Plant to Xtreme Power of Austin, Texas, and Clairvoyant Energy of Santa Barbara, California, which will manufacture energy storage systems and high-efficiency solar panels at the site.

The two clean-energy companies are planning to invest $725 million dollars into the project initially. Construction will begin next year and the energy park is expected to employ as many as 4,000 when it fully operational. In all, investment in the project is expected to reach $1.275 billion.

Clean Reading!

Clean Reading!

Bill Ford told reporters after the official announcement that he could not think of better use for the plant, which Ford initially opened more than 50 years ago to serve the booming post war markets. 

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Ford Posts $1.4 Billion Loss in Quarter One

Cash outflow slows enough to get the company through 2009.

by on Apr.24, 2009

TK

"We're comfortable we'll get through this year," said Lewis Booth, Ford's Chief Financial Officer.

Ford Motor Company is showing signs of staging a turnaround even as its key competitors General Motors Corporation and Chrysler LLC face bankruptcy.

Ford reported it finished the first quarter of 2009 with a large loss $1.4 billion. The loss, however, was significantly smaller than some analysts expected. In addition, Ford claimed it used less cash in the first quarter, slowing its cash burn that had some observers suggesting that like GM and Chrysler, Ford would eventually need help from the U.S. Treasury.

Ford finished the first quarter with $21.3 billion in automotive gross cash and reiterated that, based on current planning assumptions of 10.5-12 million unit sales a year in the U.S., it does not expect to seek a bridge loan from the U.S. government. U.S. sales through April are running under 10 million units at an annual rate.

Cash outflow, which totaled about -$3.7 billion in the first quarter, will decline through the balance of the year, said Lewis Booth, Ford’s chief financial officer. “We’re comfortable we’ll get through this year,” he said.

In the first quarter, Ford took a number of actions to strengthen its overall weak business, and also started discussions with interested parties regarding the sale of loss-making Volvo,  Q1 -$255 million, where it took a $700 million charge based on the difference between book value and the expected ultimate sale price. More write downs are possible. Every Ford Automotive region, except South America, +$63 million compared with a profit of $257 million a year ago, lost money during the quarter, as did its finance subsidiary, Ford Motor Credit. First quarter revenue was $10.2 billion in North America, down from $17.1 billion a year ago. Ford Europe reported a pre-tax loss of $550 million, compared with a profit of $739 million a year ago.

In one of Ford’s ongoing weaknesses that has negative long-term implications, Ford Asia Pacific and Africa’s pre-tax loss was $96 million, compared with a profit of $1 million a year ago. Asia is projected to be the only growth market in the world going forward,  and Ford is simply not a player in Asia. (more…)