Ford records worst quarter in its history

DEARBORN, Mich., July 24 (UPI) -- Ford Motor Co. posted its worst quarter in company history with losses of $8.7 billion, the result of a market turn toward fuel-efficient cars, analysts said.

With the average price of gasoline above $4 a gallon in the United States, consumers have turned away from heavier pickup trucks and SUVs, which traditionally provide higher profit margins than smaller vehicles.

Ford revenues in the second quarter dropped to $38.6 billion, down from $44.2 billion in the second quarter of 2007, when Ford posted a $750 million profit, the Detroit Free Press reported.

With some analysts predicting the slump in auto sales continuing through 2009, many are focused on Ford's cash reserves to see if the auto giant can survive without having to declare bankruptcy.

Ford currently has $26.6 billion on hand, the Free Press reported. Its cash reserves declined by $2.1 billion during the quarter.

In the first quarter, Ford reported a profit of $100 million.