Posted on 01/30/2009 8:12:38 AM PST by Graybeard58
DEARBORN, Mich. — After the worst annual loss in its 105-year history, Ford Motor Co. still doesn't plan to seek government aid, but it's borrowing more money and hinting at further restructuring to brace for a tough 2009 and any surprises from the unpredictable economy.
The second-largest U.S.-based automaker on Thursday reported a $14.6 billion net loss for 2008, beating its old record of $12.6 billion set two years earlier. Ford lost $5.9 billion in the fourth quarter, but more importantly it spent $5.5 billion more than it took in, dropping its cash reserves to $13.4 billion at year's end.
They keep this up and I might have to buy another Ford
Don’t be fooled, they are seeking aid, they are just spinning it real well. They don’t want a ‘bailout’ they are asking for an open line of credit instead. Their marketing department is going full swing on this.
So they want to have to pay back the money rather than just get a hand out?
That’s the funny part, the ‘bailout’ that GM and Chrysler are getting they supposedly have to pay back as well. It is all spin..
“Don’t be fooled, they are seeking aid, they are just spinning it real well. They don’t want a ‘bailout’ they are asking for an open line of credit instead.”
Bull. They already have the open line of credit that they are just now accessing. The essentially have a “home equity” line of credit that they opened 2 or 3 years ago. I’m OK with private companies and private individuals getting aid from other private companies and other private individuals.
Ford is in rather a different position, in that they have extensive overseas manufacture and distribution operations, and only their North America operation is suffering at the moment.
Their probable best strategy - let the North American operations shrink to match the market acceotance in this country, and shift their operations here to importation and assembly of components manufactured elsewhere. Eventually the world headquarters ought be shifted to another country altogether, and they maintain only a subsidiary in this country.
Might be a strategy for a number of other corporations to follow.
They lost twice the amount per share that the stock is currently trading for.
GM also has extensive overseas manufacture and distribution operations. Opel, Saab, Vauxhall, and Holden are all GM. All European manufacturers, including Ford, are hurting just as bad as North America.
Toyota, the world's number one, is having massive problems, you don't think Ford is also having massive problems?
The only difference is that Ford was bleeding cash two years ago and did all of their belt tightening then, so they are now in the unique situation where they could "coast" a bit longer than GM or Chrysler. But it's only a difference of a quarter or two until Ford burns through it's reserves as well.
GM is Opel in Germany, Vauxhall in the UK, Daewoo in Korea, Holden in Australia and Saab in Sweden. Plus they have manufacturing operations in Brazil, China Canada, Russia and other countries.
Smart of them. Once they accept federal money, the feds will own them.
Maybe they took a lesson from Hillsdale College, also in Michigan, about not accepting federal money.
That’s what I’m thinking as well- I hadn’t looked at Ford for a few years. I’m in the process of severing all relationships with my bailed-out bank and going with a small community bank. As an added plus, their mortgage re-finance rate / fees are much better than any of the big bailout banks! I like the idea that they keep it all locally and they do their own servicing.
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