Posted on 11/02/2009 11:59:56 AM PST by pansgold
C4C
Since “Cash For Clunkers” applied to Ford, GM and Chrysler. Why did Ford Motor Company post a ONE BILLION DOLLAR 3rd quarter PROFIT and GM and Chrysler post losses?
It couldn’t be the autos since all models are about the same size, design and price. I believe it was the consumer buying more Fords as a REWARD for not taking TARP money and remaining a private company. The more units sold, the more profit.
Consumer votes have been cast. Ford, GM and Chrysler have gone their separate ways. Now when GM and Chrysler look up they see the gutter and that’s about as low as they can get. Ford Stock has gone from $1.26/share to almost 8 bucks today and climbing. GM and Chrysler stock is where? (insert flushing sound here)
Well that’s just not fair that Ford should be doing so much better than GM and Chrysler... I know! Let’s take their profit and split it with the other two auto-makers... That would be fair!!
Don’t laugh.. I’m sure someone in the Obama Administration is thinking it...
The Baraqqis need to keep GM and Chrysler alive until Nov 2012.
And they’re gonna use your tax money to do it, as much as they need to print.
Ford has a tough road ahead of it.
They’re competing with the world’s automakers and the US Government.
I think it was because Ford dealers have been aggressively marketing automobiles, not because consumers are rewarding Ford Motor Company and certainly not because of the quality of their vehicles.
I agree about the quality however that BILLION came from somewhere. More cars sold equals more profits unless Ford’s profit marging is 10,000 times better than GM and Chrysler per unit sold.
The government is the reason I wouldn't buy from GM or Chrysler.
I won’t either. I now drive a GMC van and a Ford Mustang and have plans to keep both but when the time comes, It’s a FORD for me.
IIRC, there’s a US law on the books about government not competing with businesses..................
There is a definite goodwill boost to Ford. Despite the headwind of continuing to pay interest on $25 billion in debt that their rivals do not face, they are more profitable than either. All of them have been cutting costs, Ford cut deep enough that it increased profit even on lower sales. Their lower sales weren't as much lower as they feared based on projections earlier this year, because goodwill buyers sent more of their "clunkers" buys to Ford. Ford gained market share dramatically over the summer, and 2 of its vehicles were in the clunkers top 10. (Most in the list were foreign makes).
Yeah, It's right after the law that says bondholders are higher on the bankruptcy creditors priority list than union benefits.
I also couldn’t help but notice every cable channel now carrys GM ads for “try one for 30 days”. I’d say even with that agressive ad campaign by GM, they still posted a loss.
Chrysler and GM = Public Option
Consumers overwhelmingly reject Public Option when it comes to autos.
Chrysler and GM get jillions in taxpayers subsidies and still can’t compete on a playing field tilted in their favor.
But. It. Will. Be. Different. With. Healthcare. TrustUs.
I wouldn’t discount renewed passion in the dealer force either. What Obama and the Party did to GM and Chrysler dealers who were both profitable and conservative was simply evil and illegal.
Ford knows they have their back to the wall, at least everyone except the FORD auto workers themselves. They are still rejecting deals that the union has laid before them that are equal to the GM/Chrysler deals.
CEO Obammy must be green with envy...A Congressional investigation is needed!
Part of the reason is typical gov’t thinking.
GM & Chrysler were shut down for 2 months during their bankruptcy. They built no cars and had already slowed production prior to entering bankruptcy.
GM & Chrysler had very few vehicles on their lots when the CARS program went into effect (typical gov’t).
Therefore, GM & Chrysler sold all the smaller cars they could, but they just didn’t have enough on the lots to meet the demand.
If the gov’t REALLY wanted to help GM & Chrysler and REALLY wanted taxpayer money to be repaid, they would have made sure GM & Chrysler had time to build smaller cars and get them on the lots before the CARS program went into effect.
Let’s not forget that part of Ford’s $1 billion profit is OUR TAX MONEY!!!!!!!
I know plenty of people whom I have talked to about buying a new car (tax advantage this year) and almost to a person the have said they would NOT by a GM or Chrysler because of the government takeover of the companies. They feel they won’t be around to honor the warranty claims if it becomes necessary. Not saying they will be all buying FORD because most have said they will buy foreign.
One of our local Ford dealers had a billboard recently with a Ford logo and
“Buy a Ford. Drive a Ford. Say NO to Government Motors.”
plus the name of the dealership.
If my only choice is between a Ford and a foreign car, I guess I will be forced to buy a foreign car. Too bad.
I have not heard a single person say they will not buy a GM car because of Tarp/Government Motors. That I read on the internet not the real world.
GM/Chrysler is far more likely to honor warranty today than a year ago.
I know only one person that is buying a new car in the next month.
My niece. She just got married a year ago and moved from Los Angeles to Fort Wayne Indiana.
She had a 2002 VW Jetta. Is considering Dodge Nitro(becuase of integrated child seat),Ford Escape and Chevrolet Equinox( becauase her new husbands has a 2005 Cheverolet Silverado and a good relationship with the local Chevy dealer.) But she likes Escape becase two of her friends have one.
She is a Republican but not a Freeper or hardcore activist. She could care less about Tarp bailout money or anything else.
I own a 2003 Honda Accord. My next car will be a Camaro V6.
HAHA Saw that coming from the airport... Henry Ford would be proud.
Maybe people prefer to buy from a private company instead of Government motors.
Not many years ago, on FR many claimed no use for Ford because they ran ads in homosexual media.
What a turnaround to now be the choice of “true” conservatives.
Just playin with the folks in the echo chamber.
On a serious note, I think Ford has been somewhat better managed than GM and Chrysler.
Much more interesting than the olde detroit three are new vehicle firms, like Fisker Automotive.
Don't get me wrong. I'm glad to see Ford doing well and I intend to reward them for turning down the bailouts when I buy again, but they're not out of the woods yet, and neither are we.
Whoops! “I understand much of the improved bottom line.” should be “I understand much of the improved bottom line came from cutbacks.”
I agree but through no fault of FoMoCo
After over 50 years of working... My wife and I wonder if the government is going to honor our warrantee and I’m talking about Medicare, not cars.
Ye Olde Detroit Three
I was hoping some entrepreneur would buy Pontiac and do awesome things with it.
... but it sort of makes you wonder if all those huge bonuses paid to the top executives were actually worth paying so Ford could get the best management money can buy.
Your echo is crystal clear. Many of the same concerns were also voiced when Disney gave employee insurance coverage to an employee partner in a same sex relationship.
Right on! I had overlooked that point. GM filed for bankruptcy on June 2, 2009 which was the last month of the 2nd quarter however those plants were closed for months after that and no (or few) vehicles were sold until GM and Chrysler emerged from bankruptcy and that did effect the bottom line.
It is however true many avoid a GM and Chrysler purchase for any of the several reasons listed in this string. Concerns ranging from warrantee fears to anger at taxpayer money being used.
“Let’s not forget that part of Ford’s $1 billion profit is OUR TAX MONEY!!!!!!!”
...That reminds me, wait until tax time. That cash people got for their clunkers is taxable. How many will get blindsided by that?
“Ford Stock has gone from $1.26/share to almost 8 bucks today and climbing.”
It will be interesting to see if that lasts.
Now that the UAW has sniffed a profit at one of their Detroit 3
employers...and has apparently decided to pursue a path to making
sure all of the Detroit 3 are beholded to Obama and Co.
(an administration with a mission of unionizing
the whole
freakin’ USA)
I wish Ford well in trying to navigate around the UAW to maintain
their viability as a capitalistic enterprise. H-ll, I cheer them on.
But the UAW seems ready to issue threats to strike as soon as current
contract terms expire...if I correctly understand CNBC’s Phil Lebeau’s (sp?)
recent reportage.
Pontiac was a cool car. In fact, my first car was a 1958 Chieftain convertible. It was California car, rust free in fire engine red with a white top and white leather interior. The dash was full of chrome. Under the hood sat a 370 CID that I had removed the fuel injection from. With the cold Wisconsin climate in the spring, fall and winter, the older FI cars were better suited to a tri-power 3 duce setup with progressive linkage.
Oh how I wish I had that car now.
live in NJ in a retirement golfing community and on my block alone if there is one new car there are 10, everything from Toyota’s to Mercedes Benz and BMW. They are buying because sales tax on cars is a deduction this year. While there are American cars being purchased here, they represent no more then 1 in 10.
In about 3 years GM will not exist as it does today and any outstanding warranty obligations will be problematic to whichever concern takes them over and the holders (you) of the warranty. GM is 60% owned by the government and if you think they can run ANYTHING properly then good luck to you.
Personally, given the abysmal quality of the vehicles relative to imports, were I handed he keys to a GM vehicle for free, I would sell it and buy a quality car.
In the long term, Ford has been and will continue to be used as a primary law enforcement vehicle and they have their eye on the future market.
The new carbon fiber body is powered by an awesome diesel that has a top end well in excess of 130 MPH. It has all the toys like license plate reading with NCIC checks for wants and warrants as well as hot sheet. It has a Kevlar trunk pack option to make rear to front bullet penetration almost impossible thus protecting the officer.
Another feature are bullet proof doors to better protect the officers in a shootout. Another feature option in the trunk is an explosive sniffer with vent to the outside for samples.
GPS and radio computer capabilities allow it to communicate with Homeland Security as well as most law enforcement with the option to contact the military.
This new FORD is fuel efficient, fast and has a custom rear seat to accommodate handcuffs in the back for comfort as well as the old style “suicide doors” to allow for easy prisoner loading.
This squad is awesome and looks like it came from a Batman movie set. Cities will love the price tag also as it will be competitively priced with the old Crown Vic Police Interceptors. Oh, it also has night vision in the windshield for driving without headlights or surveillance. The car is available on a limited production scale right now.
Watch the price of stock then. CarbonMotors.com http://www.carbonmotors.com/news-releases/49/Carbon-Motors-Kicks-Off-2008-Pure-Justice-Tour-Across-US-Cities
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.