Ford Motor Credit
reported a $228 million fourth-quarter loss and said it will eliminate 1,200 jobs, about 20% of its workforce.
The company said the reductions will occur this year as it restructures in response to lower auto sales, and a planned reduction in Jaguar, Land Rover and Mazda receivables. The automaker
"The drastic and rapid deterioration in the economy, credit markets and auto sales in 2008 brought unprecedented challenges to Ford Motor Credit," said CEO Mike Bannister, in a prepared statement. "Tough external challenges are expected in 2009."
During the quarter, the pre-tax loss was $372 million, compared with earnings of $263 million in the quarter a year earlier. The year-ago net loss was $642 million. The results include a higher provision for credit losses, higher losses due to market valuation adjustments on derivatives, lower volume and lower financing margins.
For the full year, the company lost $1.5 billion.