Ford Turning Over The Couch Cushions

Posted by: David Kiley on July 14, 2008

I don’t want to say Ford is turning over the couch cushions looking for cash to see it through the Recession that former Senator Phil Gramm says in out heads…But the automaker is suing the IRS to try and get $445 million for interest on overpayment of income taxes.

How far back has Ford been looking for loose change? The overpayments occurred in 1983-1989, 1992 and 1994, according to the lawsuit. Ford filed in Detroit’s U.S. District Court last week. Companies pay the IRS taxes ahead of earnings, with overpayments returned. Ford says the dispute centers on when its tax deposits began to accrue interest all those years ago.

Ford has been losing money for several years, and now says it won’t turn a profit until 2010 at the earliest. Meantime, the U.S. government is in deep deficit and debt, as well. Perhaps both Ford and Uncle Sam could ask Toyota for a loan.

Reader Comments

Ovidiu Miron

July 14, 2008 4:36 PM

Yeah, probably this is what they should do :) .

Losing money is awful. But, I don't think that this deficit will continue for a long time.

Roadmaster

July 16, 2008 7:05 PM

Funny thing about turning over couch cushions - you don't always find money...

Janice Smith

July 16, 2008 7:20 PM

Ford has to do what is has to do to survive. As per aol article by George yared, The stock market value of Toyota is 168 billion to Ford's 13 billion. Toyota is 8 times larger than Ford & GM. If we don't support American products we will be seeing the end of american auto manufacturing.

munidas pereira M.B.A (McGill)

July 18, 2008 7:14 AM

While there has been an improvement in the recent past, a significant reason for the problems facing Ford has been the poor quality of their products as documented by independent sources such as consumer reports.
For this, they have nobody to blame but themselves( OPEC had nothing to do with it) as they neglected Engineering excellence (Shown by toyota)and let themselves be run by persons who could not understand quality and the impact it was having on customers.
Munidas Pereira M.B.A (McGill)

stevee0506

July 18, 2008 10:09 AM

You are right Janice, We al need to suppoert all the US auto manufacturers in this crisis situation for its survival.......Come on US Citizens, it time to show our unity......

joe lee

July 19, 2008 5:33 AM

Ford and GM are to blame for themselves. They neglect to see the future, but rather look at the past.

Snoz

July 21, 2008 4:28 AM

As to Stevee0506, and Janice's blog:
Every time I buy an "American" car to show "our unity" so we won't "be seeing the end of american auto manufacturing" I get a crappy car for my money: electric windows fail, smog computer goes bezerk, rack-and-pinion steering wears out prematurely, and other annoying items that drives me crazy. The fact is that some of the "American" car, like one Chrysler model, is entirely built in Mexico and shipped into the USA and sold as an American car. Chevy Aveo, sold under the banner of GM, is built entirely in Korea by DaeWoo. Ford's Escape shares power-train with Mazda and its hybrid version has a Toyota power-train. Several models of the GM, Ford, and Chrylser have less domestic content than many Toyota, Honda, and Suburu which are built in Indiana, Ohio, Wisconsin, Texas, and California, and have close to 90% North American parts(USA and Canada, but no parts from Mexico). I have criticized several Toyota, and HOnda salesmen for trying to sell me a purported Japanese car by pointing out to them the window stickers showing 90% domestic content. For examples, the Highlander, Accord, Camry, Tundra, Sienna, Civic, and some models of Subaru are "made in USA" more than several GM,Ford, and Chrylser products. Of course, the Big3 won't admit this paradox because this fact will explain why their cheap import parts wear-out prematurely than the American made car parts. Consumer Reports has tabulated the trouble areas of majority of the cars in the USA. The data shows the Big3 have consistently used inferior components at the expense of consumers. Many years ago, in the course of repairing a jammed rear axle of a Buick Wildcat I discovered that GM still used cheap plain old ball-bearings instead of roller bearing or tapered roller bearings which were found in my Honda Accord. The Wildcat, weighing close to 2 ton, had cracked one of the ball in the ball bearing while my HOnda, weighing about half as much, never had any problem with its tapered roller bearing even after over 200,000 miles. It is obvious that someone had decided to cut cost on a part that's not readily apparent. As a side note, that Wildcat's ball bearing was made in Europe if my memory serve me correctly. Any Blogger who appeals to patriotism or nationalism to sell "US auto manufacturers" cars is either ignorant of the car manufacturing business, or has vested interest in promoting dis-information. After reading their blogs, I can smell a few car salemen somewhere near the trash bin of stinking red herrings.

Paul

July 21, 2008 7:16 AM

I can understand people not buying Ford (or GM) cars if they are not up to scratch in terms of quality abd all round ability. But here in Europpe at least, Fords are amon the best, and sometimesI can understand people not buying Ford (or GM) cars if they are not up to scratch in terms of quality and all round ability. But here in Europe at least, Fords are among the best, and sometimes even the best, in their class.

For example, Ford Mondeo and Focus, on sale in Europe, are better than nearly anything the Japanese, never mind the Koreans, are offering right now. They even run the premium German makes close. These models are very well built, reliable with great quality and excellent driving dynamics (I know, as I run a superb Ford Focus myself). So, unless the American Fords are a lot worse than their European versions, I can't understand why the American buyers continue to buy Japanese cars in such large number at the expense of their own home makes.

I could understand this when Ford and GM used to produce inferior products, but this clearly is no longer the case.
even the best, in their class.

For example, Ford Mondeo and Focus, on sale in Europe, are better than nearly anything the Japanese, never mind the Koreans, are offering right now. They even run the premium German makes closely. These modela are very well built, reliable with great qaulity and excellent driving dynamics (I know, as I run a superb Ford Focus myself). So, unless the American Fords are a lot worse, I can't understand why the American buyers continue to buy Japanese cars in such large number at the expense of their own home makes.

I could undeerstand this when when Ford and GM used to produce inferion prodcuts, but this cearly is no longer the case.

chagrin2

July 21, 2008 11:42 PM

You are right Snoz. American automakers need get up off their lazy asses to rediscover what precision engingineering is and stop farming out work to inferior substandard parts suppliers to cut costs. It seems as if in both Ford and GM it is accountants who run the show and no the engineers. Look what the US auto industry has let happened to Delco and Delphi Automotive with outsourcing to Mexico. I can tell you that European parts makers arent necessarily the best as BMW's arent necessarily known for their reliability and are indeed very delicate cars. The Japanese do however make very good parts with companies such as Aisin, Sumitomo, Nisin , FHI, Nippon Denso etc but of late because of cost issues are" farming " out work to companies from East Asia and China such as 555 brand which are of inferior standards.

PerplexedAndSurroundedBYDumbAsses

August 20, 2008 4:48 PM

When purchasing foreign cars there is more lost to the american economy than the content and price of parts. We also move profit offshore.

As an american business owner and someone that works with American manufacturing companies on a daily basis I would prefer to see my neighbor make a profit. Call me simple and silly but when my neighbor makes a profit I think there is more potential that my children may someday have the opportunity to earn that money back.

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