Ford is living in denial?

Discussion in 'Wall St. News' started by turkeyneck, Jun 1, 2009.

  1. How come this POS doesn't need a bailout?

    SAN FRANCISCO (MarketWatch) - The specter of a potential bankruptcy from General Motors Corp. has given rival Ford Motor Co. a leg up in recent months as new-car shoppers have leaned toward the more stable of the two companies.

    Of course, Ford's perceived health is relative. Market share in its home market is still dropping as U.S. auto sales fell another 31% in April.

    Losses are mounting for the maker of the Blue Oval brand, as well. Ford posted its biggest loss ever last year of $14.7 billion and the company lost another $1.4 billion to start the year, a slight improvement from the year-ago quarter.

    Still, Ford's ability to survive the historic industry downturn without the help from Uncle Sam has clearly struck a chord with consumers exhausted by the bailouts and clamoring for the free market to take its course. Ford's sales declines this year, while severe, haven't been as bad as GM's and bankrupt Chrysler's.

    In fact, Ford is expected to show a strong month-over-month improvement in May sales on Tuesday while both GM and Chrysler results continue to deteriorate, according to

    However, the reality of a GM backed by the U.S. government, with access to further federal money and unfettered by some of the costs that have plagued domestic automakers, has arrived and it could spell trouble for Ford.

    Along with the competitive pressures that restructured versions of GM and Chrysler present, Ford will have to grapple with a reeling supplier base that is in no shape to withstand even more production cuts and plant shutdowns.

    Ford's supply chain is already in disarray, with its top supplier and former division Visteon Corp. succumbing to industry cutbacks and dwindling cash to file for bankruptcy last week. Dozens more will likely follow suit in the coming months as GM and Chrysler work their way through the process.

    In Visteon's case, Ford is likely on the hook for hundreds of millions of dollars to ensure the availability of the parts and materials needed to keep its own assembly lines in operation.

  2. I'm not sure if Ford is that big of a POS, actually. They clearly are better managed than GM/Chrysler and have been for some time, as evidenced by their relative position to their peers.

    I think the biggest travesty in this whole auto mess would be if Ford suffered business-wise by NOT taking government assistance, only to watch GM thrive after bankruptcy. Rewarding GM's incompetence while effectively punishing Ford for it's prudence would be a huge blow.
  3. Drive a 2010 Fusion, and you may change your idea of Ford's being POSes...
  4. pspr


    Eventually Ford won't be able to comptete against Democrat Motors and Union Motors. Obama will take care of his babies.
  5. Smurfie


    Why the POS?
  6. Ha! What a coincidence, I was just going to post the same thing.
    I rented one last week-end, and was very impressed.
    However... I sold the stock today, it was a good run..
    I am probably out too early, just like to leave some money on the table. I would buy it again below $5.