FoMoCo announced today that it lost $14.6 billion for the full year of 2008, its biggest loss in its 105-year history. The Detroit automaker lost $5.9 billion in the fourth-quarter alone. In 2007 Ford lost a total of $11.8 billion for the year and $3.1 billion in the fourth quarter.

Ford said that it is still not looking to borrow money from the U.S. government as its rivals General Motors and Chrysler have. “Based on current planning assumptions, Ford has sufficient Automotive liquidity to fund its business plan and product investments and does not need a bridge loan from the U.S. government,” Ford said in its press release (you can view it after the jump).

The automaker also said that it “remains on track for both its overall and its North American Automotive pre-tax results to be at or above breakeven in 2011, excluding special items.”

View the details in the press release after the jump.

Press Release:

• Net loss of $5.9 billion, or $2.46 per share, for the fourth quarter of 2008 amid a sharp global decline in vehicle demand; pre-tax loss of $3.7 billion from continuing operations, excluding special items. ++
• Reduced Automotive costs by $1.4 billion in fourth quarter and $4.4 billion in 2008 versus year-ago levels.  Achieved $5.1 billion in North America cost reductions at year-end 2008 compared with 2005, excluding favorable impact of depreciation and amortization from asset impairment at the end of the second quarter.  
• Decisively reduced global dealer stocks by more than 50,000 vehicles compared with the third quarter.  Ford now has among the lowest days” supply in the industry.    
• Product transformation continues to gain strength, helping the company to gain market share in Europe for fourth quarter and full year, and in the U.S. in the fourth quarter.
• Total liquidity of $24 billion, including Automotive gross cash of $13.4 billion, at Dec. 31, 2008. +++
• Ford is drawing its available credit lines due to concerns about the instability of the capital markets with the uncertain state of the economy.  The $10.1 billion will be added to company cash for the first quarter 2009.
• The United Auto Workers union has agreed to end the “jobs bank” at Ford.  The company and the union are presently working out the details of implementation.
• Based on current planning assumptions, Ford has sufficient Automotive liquidity to fund its business plan and product investments and does not need a bridge loan from the U.S. government.
• Ford remains on track for both its overall and its North American Automotive pre-tax results to be at or above breakeven in 2011, excluding special items. 

Fourth Quarter 2008 $228 Million Net Loss Reported

DEARBORN, Mich., January 29, 2009 ““ Ford Motor Credit Company reported a net loss of $1.5 billion in 2008, a decrease of $2.3 billion from net income of $775 million a year earlier. On a pre-tax basis, Ford Motor Credit reported a loss of $2.6 billion in 2008, including the second quarter 2008 impairment charge of $2.1 billion for North America operating leases, compared with earnings of $1.2 billion in the previous year. The decrease in full year pre-tax earnings is more than explained by the impairment charge, a higher provision for credit losses, and higher depreciation expense for leased vehicles.

In the fourth quarter of 2008, Ford Motor Credit”s net loss was $228 million, down $414 million from a year earlier. On a pre-tax basis, Ford Motor Credit reported a loss of $372 million in the fourth quarter, compared with earnings of $263 million in the previous year. The decrease in fourth quarter pre-tax earnings primarily reflected a higher provision for credit losses, higher net losses related to market valuation adjustments to derivatives, lower volume, and lower financing margin. Lower operating costs were largely offset by other expenses.

“The drastic and rapid deterioration in the economy, credit markets and auto sales in 2008 brought unprecedented challenges to Ford Motor Credit. The historic decline in used-vehicle auction prices across the industry affected our North American lease portfolio and led to a second quarter impairment,” Chairman and CEO Mike Bannister said. “Tough external challenges are expected in 2009. However, we will continue to manage our business through consistent and sound risk management, lending and servicing practices.”

On December 31, 2008, Ford Motor Credit”s on-balance sheet net receivables totaled $116 billion, compared with $141 billion at year-end 2007. Managed receivables were $118 billion on December 31, 2008, down from $147 billion on December 31, 2007. The lower receivables primarily reflected lower North America receivables, changes in currency exchange rates, the impact of divestitures and alternative business arrangements, and the second quarter 2008 impairment charge for North America operating leases.

Ford Motor Credit also is restructuring its U.S. operations to meet changing business conditions, including lower auto sales and the planned reduction in Jaguar, Land Rover and Mazda receivables, and to maintain a competitive cost structure. The restructuring will affect servicing, sales and central operations and eliminate about 1,200 staff and agency positions, or about 20 percent. The reductions will occur in 2009 through attrition, retirements and involuntary separations.

Source: AutoObserver