Go Ford!

[giant_mtb]

Damn.  Shoulda bought mo' Ford at $12.50 last weekz.

[r0tor]

$2billion first quarter profit baby!

[FoMoJo]

From www.motortrend.com:

Ford Sees Resale Values Rise, Warranty Repairs Fall With New Models
4/13/2010 04:15 PM by Scott Evans

Though in a fair amount of trouble themselves not that long ago, Ford has been the darling of Detroit in recent times as the company restructured itself and improved product without bankruptcy or government involvement. The hard work has paid off, with Ford reporting significant improvements in resale value and steep decreases in warranty repairs.

"The positive reception by consumers of our recent product introductions and freshening is reflected in our higher transaction prices and increased market share," said Jim Farley, Ford's group vice president of Global Marketing.

"The difference in Ford's products today is significant. We're proud of the progress we've made. It feels good to be able to deliver great-looking vehicles and industry-leading quality at an affordable price in every sense of the word."

Farley has just cause to boast. Overall resale of Ford's three brands together has increased by 23 percent in the past year alone according to auction data from the North American Dealers Association, outpacing the industry average by four percent. Ford's latest products are leading the charge with the 2010 Taurus commanding a 50-percent higher price at auction than a 2009 model and a 2010 Fusion V-6 bringing 26-percent more home than a 2009 model.

Contributing to the increased resale values are even larger gains in quality. Ford reports that warranty repairs for vehicles in their first three months on the road have dropped 40 percent worldwide over the past three years, saving the company $1 billion in repair costs. The benefits aren't all after the fact, either. Ford not only gained market share in the U.S. in 2009 but also increased its average transaction prices. Initial quality has also improved steadily over the past five years. Ford claims its vehicles now have the fewest number of defects of any full-line automaker according to research from the RDA Group.

"We are operating with a truly dedicated discipline to quality," said Bennie Fowler, Ford's group vice president of Global Quality. "The results are paying off for our customers with fewer trips to the dealership and a higher satisfaction with the Ford, Lincoln or Mercury product they purchase."

Read more: http://wot.motortrend.com/6666285/industry-news/ford-sees-resale-values-rise-warranty-repairs-fall-with-new-models/index.html#ixzz0l6ZfopS2

Farley is either very smart or very lucky to have left Toyota for Ford when he did .

[r0tor]

and yet credit suisse downgrades their stock and it plumments... credit ratings places should really get investigated by the FCC 

[giant_mtb]

and yet credit suisse downgrades their stock and it plumments... credit ratings places should really get investigated by the FCC 

I bet Toyota paid them to lower their rating.

[GoCougs]

and yet credit suisse downgrades their stock and it plumments... credit ratings places should really get investigated by the FCC  

Problem with Ford is that it has profound debt issues owing to the loans it took out to stave off implosion; to get an idea of how bad it is at $34B it has almost double the debt that GM had before GM went into BR.

Ford in 2009 paid $1.5B alone just in interest on this debt, and the loans start coming due in next April. People are remiss if they believe that BR isn't still a very real possibility for Ford. A position in Ford at this point is basically speculative IMO.

[SVT666]

Problem with Ford is that it has profound debt issues owing to the loans it took out to stave off implosion; to get an idea of how bad it is at $34B it has almost double the debt that GM had before GM went into BR.

Ford in 2009 paid $1.5B alone just in interest on this debt, and the loans start coming due in next April. People are remiss if they believe that BR isn't still a very real possibility for Ford. A position in Ford at this point is basically speculative IMO.

Ford is doing very very well right now.  They'll be fine.

[FoMoJo]

Problem with Ford is that it has profound debt issues owing to the loans it took out to stave off implosion; to get an idea of how bad it is at $34B it has almost double the debt that GM had before GM went into BR.

Ford in 2009 paid $1.5B alone just in interest on this debt, and the loans start coming due in next April. People are remiss if they believe that BR isn't still a very real possibility for Ford. A position in Ford at this point is basically speculative IMO.

They also have $25B in cash.

[r0tor]

A position in Ford at this point is basically speculative IMO.

I got 20k worth of speculation i paid 3k for 

[SVT666]

Cougs just can't stand to see the blue oval doing well, so he has to try and find something to pick on...unsuccessfully I might add.

[GoCougs]

They also have $25B in cash.

Let's look at this, from all sides, on a macro level. As of today your net worth is $45k of which $25k is in cash, you have $35k of debt, and make clear only $8k per year. Would you be doing well especially considering a large portion of your $35k debt starts coming due next year? (Note to the audience - substitute "$B" for "$k and you have Ford's position as of today).

Like I said, Ford has a staggering debt problem that neither GM nor Chrysler never even came close to approaching before they went under. Ford would have gone under too if not for the loans. Also if you dig further, at least in Ford's recent quarters (don't know about this most recent one) a good portion of its profit came from cost restructuring and vehicle financing.

My point is not to cut on Ford my point is to denote Ford's true position. Doing better than a BR or nationalization but it still has major challenges the next couple of years owing to the staggering amounts of debt rarely if ever seen by companies of this size, the likely resurgence of Toyota, and the possibility of continued economic malaise if not a second dip.

EDIT: a bit of a boo-boo - not making $8k/year that's clearing $8k/year after expenses.

[GoCougs]

I got 20k worth of speculation i paid 3k for 

By all means, speculate yer way to stardom!

But IMO have a plan to go short if things start to go awry.

[mzziaz]

By all means, speculate yer way to stardom!

But IMO have a plan to go short if things start to go awry.

Or rather just sell (half) with great profit.

[r0tor]

Or rather just sell (half) with great profit.

fark that... F can double yet in the next 5 years once they pay off the debt and come out of the meltdown as one of the top 1 or 2 automakers

[mzziaz]

fark that... F can double yet in the next 5 years once they pay off the debt and come out of the meltdown as one of the top 1 or 2 automakers

This will be sig worthy in due time, mark my words.