Ford Loss

When Henry Ford changed from Model T to Model A, how much did the decease of the T model and the birth pangs of the A model cost him? Many a U. S. motorist has asked himself that question, has found one answer in the fact that 1928 Chevrolet production exceeded 1928 Ford production. Last week, however, a dollars-and-cents answer was provided. From figures filed last week with the Massachusetts Commissioner of Corporations in Boston, it appeared that the new model bill was something more than $72,000,000. For, according to these figures, the Ford profit and loss surplus/- had dwindled from $654,851,061 at the end of 1927 to a mere $582,629,563 at the end of 1928, thus indicating a year's loss of $72,221,498--not counting, of course, what Ford profits might have been if Model T could have been kept going. There was also an indicated loss of some $42,000,000 in 1927. Automobile production figures for the first quarter of 1929 (TIME, April 15) show that the Ford has regained its position as greatest unit producer, some 180,000 March Fords comparing with some 140,000 March Chevrolets.

Meanwhile, however, Mr. Ford maintains that he lost no money in changing over from Model T to Model A. According to a story widely circulated in financial circles, Ford-maker Ford, after deciding upon his model change invested heavily in General Motors stock. Inasmuch as the General Motors stock increased in value somewhat in proportion to the stories concerning Ford difficulties with its new models, so Mr. Ford made on General Motors what he lost on his reorganization program. "Shrewd!" said many a Ford-worshipping U. S. citizen, "Henry can't be beat." But closest Ford observers received this tale as only the last and best Ford joke.

/- The Ford Motor Co. does not publish the usual earnings per share statement.