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Article: Marketing costs sting Ford; Low sales volume, 0 percent plan culprits in third-quarter loss.(Brief Article)(Statistical Data Included)
- Article from:
- Automotive News
- Article date:
- October 22, 2001
- Author:
CopyrightCOPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Steeply rising marketing costs are hitting Ford Motor Co. just as the automaker is crafting a painful turnaround strategy in North America.
Ford spent an additional $500 million, a 21 percent increase, to sell its vehicles in the United States in the third quarter of 2001, compared with the same three months a year ago.
The timing is difficult for Ford. As the economy falters and General Motors gains momentum, Ford is forced to keep pace on sales spending.
In the third quarter, Ford already slashed production, halved its dividend and announced it will furlough as many as 5,000 workers. The company's cash is low, and strategists are reviewing ...