Ford has been busy marketing itself as America’s Healthiest Automaker — but Bloomberg says that the company may need a bailout after all.
Ford Motor Co., the second-largest U.S. automaker, may have to abandon a plan to forgo federal loans as the weakening economy threatens to drive domestic sales 10 percent lower than the company’s forecast.
Ford predicts that U.S. light-vehicle sales will reach 12.2 million units this year, almost 2 million more than the annualized sales rate over the last 3 months. Chrysler LLC forecasts that sales may reach 11 million, while General Motors Corp. projected a range yesterday of 10 million to 11 million.
“The market will not reach 12.2 million units this year, no way, no how,” said John Wolkonowicz, an IHS Global Insight analyst.
Ford’s predictions are based on the assumption that consumers will start buying cars once the stimulus packages start — well— stimulating. If sales continue to decrease, Ford could be in trouble.
Ford May Seek U.S. Help as Economy Imperils Sales (Update3) [Bloomberg]