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 show
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 up.
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.
Jeff
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.
Derek
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!
That's because you got something right for a change! B-)
No, I didn't.
Jeff
on 10/25/09 10:23 AM I M said the following:
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 lots, too.
Apparently, not everyone. ;-)
Jeff
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 parked together.
DUH, why do think I said Honda and Lexus, not everyone. LOL
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