Interesting Article on Ford

[TomServo]

http://money.cnn.com/2009/06/17/news...ex.htm?cnn=yes

$32B in debt and no way out. Folks have been saying for months that FORD's supposed "strength" was smoke and mirrors. Maybe folks will realize just how tenuous FORD's position is.

All the FORD FanBoy's keep laughing. I believe Chrysler and GM will have the last laugh.

[MuscleCarz]

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[BackinBlackSS/RS]

Originally Posted by TomServo

http://money.cnn.com/2009/06/17/news...ex.htm?cnn=yes

$32B in debt and no way out. Folks have been saying for months that FORD's supposed "strength" was smoke and mirrors. Maybe folks will realize just how tenuous FORD's position is.

All the FORD FanBoy's keep laughing. I believe Chrysler and GM will have the last laugh.

No this can't be!! Mullaly(sp?) is the greatest thing since sliced bread. I've heard all the Mustangs guys say it.

[FenwickHockey65]

Nobody would believe me when I said over and over again that Ford was not in as good a position as the Mustang fanboys said they were...

[Hesh]

Yep there was an article saying the same thing. They were saying if sales did not pick up by the end of the year, and not keep the large losses posted. Ford would be in the same place as GM and Chrysler.

[Georgie]

even if they do file for bankruptcy they might be able to do it without the governments hand in their business since they did not take taxpayer money

[UCF w00t]

Originally Posted by Georgie

even if they do file for bankruptcy they might be able to do it without the governments hand in their business since they did not take taxpayer money

They will have to take government funds if/when they file bankruptcy. No independent lender will be able/willing to provide them with the kind of debtor in possession financing needed to make it to the other side. And the worst part is that Ford MORTGAGED their assets meaning if they file, those assets get taken over by the creditor. Bye bye blue oval :(

[Georgie]

we'll see. although their long term debt is high, it does decrease each quarter and their cash and cash equivalents stayed about static from the last quarter. though they did take a loss this quarter it is much lower than was forecasted. when 2Q data becomes available we will see where they are heading. i still give them credit for wanting to do this on their own; it takes a lot of hard work in order to turn a company topside without any government assitance

[FenwickHockey65]

Ford already said that if the US market doesn't crack a certain number of units sold this year, they're going to have to request federal loans.

[Georgie]

Originally Posted by UCF w00t

And the worst part is that Ford MORTGAGED their assets meaning if they file, those assets get taken over by the creditor. Bye bye blue oval :(

also, im not well versed in bankruptcy law, but lately history has been changing as we all saw with chrysler: bond holder's are the first entity to be paid but with the fiat merger they got the shaft and are SOL. i think that is the first time in history? point is, with the government involved, rules are obviously being broken, so who knows what will happen moving forward.

[UCF w00t]

Ford pretty much got lucky. If GM and Chrysler would've known that the market would tank and financing would practically disappear they would've borrowed cash before crap hit the fan as well. Ford had started their restructuring long ago and needed cash to finance it all so was better prepared to handle the market slump.

And yea, who knows when the fed is involved. Although this case is much more specific since they actually mortgaged specific items.

[MrIcky]

Originally Posted by UCF w00t

Ford pretty much got lucky. .

As the saying goes, you make your own luck. I'm not some big Ford apologist, but at least they foresaw what was coming. I don't think anyone thought it would last this long though.

[comiskeybum]

cross that bridge when and if it comes my friends. for now, we are still the only company to not take gov money or bankruptcy

[attymf]

I'm not laughing. I dont wanna see any US car company faulter. Blame your fellow Americans for buying foreign cars.

I'd like to add that if the car companies fold who will build all of the tanks and other military vehicles for the United States.

The US auto industry failing is a National Security issue. Maybe Germany or Japan will defend us when the time comes. Think about that everytime you buy a Honda or BMW.