That little thing called cash burn
Ford Motor Co, which could be referred to as the Big One after GM and Chrysler’s fall from grace, has investors cheering after it posted a $2.26 billion profit in the second quarter and a smaller than expected operating loss. But it’s still burning through lots of cash. Sure it’s less than before, but $1 billion in a quarter still isn’t anything to sneeze at, especially since it’s been trying to turn itself around since 2005.
From the release:
Automotive operating-related cash flow was $4.7 billion negative during the first half; on track with Ford’s plan.
What would things have looked like without a plan?