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Ford Explains $1 Billion Loss
Rare metals accounted for part of those big losses, explained Nick
Scheele, COO and architect of the automaker's turnaround plan. When the
plan was announced last week, it contained a somewhat mysterious $1
billion write-off for rare metals. During an appearance at the Automotive
News World Congress, Scheele explained that Ford had purchased a
significant amount of palladium, a material used in catalytic converters.
Unfortunately, it bought at a market peak, when the metal cost $1400 a
troy ounce. It has since fallen to $400. On top of that, Ford engineers
have since found ways to slash the amount of rare metals needed in
catalytic converters. So Ford will sell off its stockpile and take a big
financial hit.
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