ford bankrupt?
Elder User
Joined: Jun 2005
Posts: 645
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Technically they aren't bankrupt. In reality they are.
From an article in one of the Detroit papers:
Add to it this:
"Cash outflow" is the same as saying "cash burn", a situation where you get nothing for something. It's a bad thing.
Ford's market share is in a free fall. I live in an area that is crawling in SuperDutys. Except I've only seen one 2008 model on the road ever. No one is buying them around here. Compare that to the GMT900's which I see on the road, in people's driveways, at the mall, etc. That is a market share problem, but more importantly a cash flow problem.
So, technically Ford is not bankrupt. In reality they are being propped up by $23 billion in financing with very little prospect of ever paying it back.
From an article in one of the Detroit papers:
Ford Motor Co. is going all in on a bet-the-company financing strategy that will put virtually all of its U.S. assets -- including factories, office buildings and technology -- up as collateral in a multibillion-dollar credit deal designed to buy time to execute a North American restructuring.
The struggling automaker hopes to obtain $18 billion in financing to fund its turnaround and shore up its liquidity as protection against unanticipated events, such as a recession, the company said in a statement Monday.
The financing will include up to $15 billion in secured loans, which will be backed by most of Ford's domestic assets, as well as all or part of the stock it owns in subsidiaries such as Ford Motor Credit Co. and Volvo. (Note: It also includes rights to the blue oval logo)
<!--startclickprintexclude--> This is the first time Ford has put its assets up as collateral. Doing so gives it access to much-needed funding, but also translates into a big increase in debt-servicing costs. More critically, the company's future is on the line if it fails to execute a turnaround.
"This is Ford's one last shot to get it right," said Wall Street analyst John Casesa of the Casesa Shapiro Group LLC. "If the restructuring plan is not executed flawlessly, the company will lose its independence
The struggling automaker hopes to obtain $18 billion in financing to fund its turnaround and shore up its liquidity as protection against unanticipated events, such as a recession, the company said in a statement Monday.
The financing will include up to $15 billion in secured loans, which will be backed by most of Ford's domestic assets, as well as all or part of the stock it owns in subsidiaries such as Ford Motor Credit Co. and Volvo. (Note: It also includes rights to the blue oval logo)
<!--startclickprintexclude--> This is the first time Ford has put its assets up as collateral. Doing so gives it access to much-needed funding, but also translates into a big increase in debt-servicing costs. More critically, the company's future is on the line if it fails to execute a turnaround.
"This is Ford's one last shot to get it right," said Wall Street analyst John Casesa of the Casesa Shapiro Group LLC. "If the restructuring plan is not executed flawlessly, the company will lose its independence
DETROIT, Nov 29 (Reuters) - Ford Motor Co.(FN: Quote, Profile, Research) said on Wednesday it expects a cash outflow of about $17 billion from 2007 to 2009
Ford's market share is in a free fall. I live in an area that is crawling in SuperDutys. Except I've only seen one 2008 model on the road ever. No one is buying them around here. Compare that to the GMT900's which I see on the road, in people's driveways, at the mall, etc. That is a market share problem, but more importantly a cash flow problem.
So, technically Ford is not bankrupt. In reality they are being propped up by $23 billion in financing with very little prospect of ever paying it back.
Posting Guru
Joined: May 2006
Posts: 1,889
Likes: 0
From: MACON, GA
Dated info.
Even if Ford would file chapter bankrupcy, who do you think would pick up the pieces? Clue, the Ford family. Toyota wants to play hardball in America, maybe the plan is to file bankrupcy, get a clean slate, show to the Guv ern ment that they tried, Ford family controls the vote; 20 to 1 to shareholders, pay 10 cents on the dollar, and, pray tell, buy Tom Hoffman a new truck, and start all over!
Even if Ford would file chapter bankrupcy, who do you think would pick up the pieces? Clue, the Ford family. Toyota wants to play hardball in America, maybe the plan is to file bankrupcy, get a clean slate, show to the Guv ern ment that they tried, Ford family controls the vote; 20 to 1 to shareholders, pay 10 cents on the dollar, and, pray tell, buy Tom Hoffman a new truck, and start all over!
Post Fiend
Joined: Feb 2004
Posts: 5,378
Likes: 3
From: nebraska
Originally Posted by dmp437
Technically they aren't bankrupt. In reality they are.
From an article in one of the Detroit papers:
Add to it this:
"Cash outflow" is the same as saying "cash burn", a situation where you get nothing for something. It's a bad thing.
Ford's market share is in a free fall. I live in an area that is crawling in SuperDutys. Except I've only seen one 2008 model on the road ever. No one is buying them around here. Compare that to the GMT900's which I see on the road, in people's driveways, at the mall, etc. That is a market share problem, but more importantly a cash flow problem.
So, technically Ford is not bankrupt. In reality they are being propped up by $23 billion in financing with very little prospect of ever paying it back.
From an article in one of the Detroit papers:
Add to it this:
"Cash outflow" is the same as saying "cash burn", a situation where you get nothing for something. It's a bad thing.
Ford's market share is in a free fall. I live in an area that is crawling in SuperDutys. Except I've only seen one 2008 model on the road ever. No one is buying them around here. Compare that to the GMT900's which I see on the road, in people's driveways, at the mall, etc. That is a market share problem, but more importantly a cash flow problem.
So, technically Ford is not bankrupt. In reality they are being propped up by $23 billion in financing with very little prospect of ever paying it back.
Take a trip to Dearborn an look at the new things Ford has for vehicles. The tough testing center to test the new 150 out. Make sure its the class leading vehicle it is. Ive seen more innovative things the last few years at Ford then the previous 10 years.
Right now Ford has answered Toyota in there vehicles. The Fusion IMO is the best car for the money out there an matches any car has to offer to compete with it.
Laughing Gas
Joined: Jun 2007
Posts: 1,215
Likes: 1
From: Washington
Overall the vehicles Ford has come out with recently (fusion, edge, superduty) have been really flawless. My dad a Ford mechanic has worked on 1 Fusion, 1 Edge, and thats all that have come into the dealership except for routine matience. There have been 3 Superduties that have come in, 1 for cracked DPF, 1 for a loose connector, and one for a cracked radiator. So all in all Ford is going up in quality and getting better vehicles out there imho. They have gotten more vehicles on consumer reports good list and off the bad list, while Toyota has started putting more vehicles on the bad list.
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