Second tsunami will hit soon, 3-5 months. As car sales plummet even
more and FORD can not refinance its debt, will it too go a begging? A
car company that is essentially private via the the 2 classes of shares?
You are confused if that is what you chose to believe. Ford is current on
the payments due all of it bank loans. Ford has adjusted its economies of
scale, to the point it will show a profit in the expected market for
10,000,000 plus vehicles sales in 2010. If you follow the market you will
see Fords stock price has been up every month, for that reason.
Ford has been investing billions on all new models for the past 24 months.
They are now in a position to earn more than they have been spending for two
years on those new models.
The only new models that have been developed, but are not yet available on
the market, are the new 2011 HD F Series trucks to be introduced in the
spring of 2010, and the 2011 US built model of their high mileage European
small car, the Fiesta.
Jay Leno has been running the all electric version of the 2011 Fiesta on his
Ford's bonds are still below investment grade. I very much admire what
CEO Mulally has done. But the Tsunami rumbles on. Next up: commercial
real estate and the true torrent of foreclosed homes in 2010 as 2007
ARMS go ballistic. I certainly don't want to see this happen, but the
price must be paid...by the taxpayer.
on 10/24/09 1:36 PM Mike Hunter said the following:
I think you are wrong about Ford, I have been buying Ford stock since May
because I know Ford is good shape overall and every time I have it has been
However, I agree commercial real estate will be the next foreclosure
problem. Go to most any a mall, there are not enough people in them and
the owners are lowering rental rates big time.
After the Halloween and Christmas seasons are finished they will be falling
like dominos. I have sold off most of my commercial properly investments.
over the past nine months
I agree. Not only that, but malls are often financed by five-year
financing contracts. Guess when those come up for renewal. And, one
major mall owner is already in Chapter 11. In fact, I will go right by
that mall in a few minutes.
On the other hand, now is the time to open a business in a mall - the
mall rates are relatively cheap.
The local/regional banks will pay this time. Even the ones that stuck
to conservative lending. The tsunami caused by the elites will wipe out
everything. Hopefully, we can rebuild. But the big banks are getting
bigger and leveraged security gambling is back in style. No lessons
learned. Second wallop could be worse.
on 10/24/09 6:52 PM Mike Hunter said the following:
Doubtful. Two different Wall Street analysts have suggested in the past
week that Ford may surprise everybody with a 3rd Quarter profit.
Personally, I don't think car sales will decline much further, if at all. I
see no reason to think things cannot be managed at Ford without hitting up
Obama for some cash.
anyone know the status of Ford/Volvo? Ford was supposedly raising cash
when divesting themselves of Jaguar, Aston, etc. (Thanks for the
billions down the drain, Jaques) and supposedly trying to unload Volvo,
too (bad idea IMHO) but haven't heard much lately.
I don't follow the financial news like you guys, just "seat of the
pants" here in a little mid-west town.....but......new Fusions all over
the place - seems many more here than new Toys or Accords...........the
restyled Taurus seems to be well-received here, too...........my elderly
neighbor lady who used to get a new Lincoln every 2 years, but hung-on
to the last one for quite a while suddenly has a MKZ (it's pretty and
just the right size)......and seems a number of non-car people heard the
recent news stories about "premature rustout" of Toyota trucks - can't
hurt sales of Fords!
People are feeling patriotic and don't want to buy Government Motors (GM
and Chrysler) so they buy Ford. I like that Ford brought back the mean
headlight look (first seen on Contour SVT) on the Fusion. Now put the
bi-turbo in it with an AWD drive option.
Not only are GM and Chrysler buyers buying Ford vehicles, look on the FLM
dealers used car lots and you will see plenty of the Japanese and Korean
brands on their lots as well.
Apparently somebody beside Ford like the three bar grill design. Both
Honda and Lexus have new models that have the Ford three bar grill design
Yet, the used car lots are often get their cars from wholesalers and
other dealers within their network (if a dealer sells cars from more
than one maker).
In addition, you find Fords, Chevies and Dodges on Toyota and Honda
Get real, once again you have chosen to comment on a subject to which you
obviously have little or no knowledge.
Of course one will see other brands on other brand dealers lots. My point
was if the import brands were so superior to domestics, why are the import
owners not buying another from the import dealer?
No NEW car dealer that is selling the number of NEW cars it should be
selling of its monthly allocation every month, BUYS used cars. Any new
car dealer, that is selling its allocation or more, would be trying to sell
off their trades in around two to three months at retail, or else they will
sell them to wholesalers or at the general used vehicle auctions. If not,
they will tie up the capital they need to obtain the new vehicles they need
for stock. What makes you believe any VIABLE dealership would want to
carry USED cars on their floor plan, when they can floor plan NEW cars, at a
much lower interest rate?
In any event those new car dealers that MUST buy used vehicles, because they
are not selling enough new vehicles to sustain the business, buy only the
one to three year old vehicles they need at their OWN brand(s) auctions,
never at the general use vehicle auctions, dummy
Prove it to yourself. Go to you closest Manheim Auction, pay the small fee
required, because you are not a new or used car dealer. What you will see
is that when they are running through Manufacturers brands, with the
exception of Toyota that can sell to anyone, that they will announce that
only franchise dealers may bid.
After all of the manufactures' vehicles are sold off you will see the
franchised dealers leaving. If you go to the "Sold" lot(s) you will see all
of the manufactures' vehicles that were purchased by the franchise dealers
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