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Various Thoughts on Ford and Other Manufacturers

FastCarFanBoy

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My bomb has been ticking since Dec 2012... currently at ~750whp and still waiting for detonation.

fuckin junk.
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YOLO

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My bomb has been ticking since Dec 2012... currently at ~750whp and still waiting for detonation.

fuckin junk.

Speaking of "Junk," Ford was downgraded today to Junk: https://finance.yahoo.com/news/ford-cut-junk-moodys-doubts-202155962.html

(Bloomberg) -- Ford Motor Co. was dealt a major blow by Moody’s Investors Service, which cut the carmaker’s credit rating to junk on doubts that a turnaround plan by Chief Executive Officer Jim Hackett will generate earnings and cash quickly enough.
 

Tickitty Tock

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Speaking of "Junk," Ford was downgraded today to Junk: https://finance.yahoo.com/news/ford-cut-junk-moodys-doubts-202155962.html

(Bloomberg) -- Ford Motor Co. was dealt a major blow by Moody’s Investors Service, which cut the carmaker’s credit rating to junk on doubts that a turnaround plan by Chief Executive Officer Jim Hackett will generate earnings and cash quickly enough.
If that constitutes “junk” what grade would they give to GM and it’s decision to release the 2019 camaro ?

Turds?
 

YOLO

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If that constitutes “junk” what grade would they give to GM and it’s decision to release the 2019 camaro ?

Turds?

It's pretty sad when an Iconic U.S. company like Ford is rated "JUNK" in a Trump economy and Wall St at Historic highs.

What's gonna happen "if" Bernie or Pocahontas win next year?

Ford may be toast under the Libtards.
 

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Notagain

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Ford will take a bailout if needed I mean lets be honest the other 2 already did........

I dont know about the rest of you but I never got my Corvette or Viper with a letter on the deivers seat saying THANK YOU TAXPAYER
 

shogun32

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I dont know about the rest of you but I never got my Corvette or Viper with a letter on the deivers seat saying THANK YOU TAXPAYER
Yeah me neither. I would have expected a "thank you for keeping me employed and my preposterous pension and healthcare benefits intact."

Ford borrowed heavily in the bond/equity markets whereas GM and Dodge went to the gov't for a handout. Ford did the responsible thing whereas the other 2 went to the bank of political whims to get a sweet-heart deal only politicians have the unmitigated gall to allow in exchange for the Union plantation's votes. Both GM and Dodge should have been forced to pay market rates for their debt or forced to implode and the pension and healthcare "contracts" nuked back to reality.
 

Notagain

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Yeah me neither. I would have expected a "thank you for keeping me employed and my preposterous pension and healthcare benefits intact."

Ford borrowed heavily in the bond/equity markets whereas GM and Dodge went to the gov't for a handout. Ford did the responsible thing whereas the other 2 went to the bank of political whims to get a sweet-heart deal only politicians have the unmitigated gall to allow in exchange for the Union plantation's votes. Both GM and Dodge should have been forced to pay market rates for their debt or forced to implode and the pension and healthcare "contracts" nuked back to reality.
Thank god! Is thia reality? You mean just maybe.... Other rational people think this too!

That makes my day. Man I almost forgot that its possible for people to have common sense!

Thanks guy.

Easily POTY!
 

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DRB

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Ford's bonds are still rated investment grade at S&P and Fitch, and it appears that most analysts - including those at Moody's - expect the company to pull through this and do well enough eventually. Their long-term restructuring program is taking a toll, but at least their management is willing to take that bit in their teeth rather than extemporize forever.

As for how government policies may affect them - if you follow the news you'll note that Detroit has not considered themselves to particularly benefit from the climate of the last few years, and aren't likely to view routine changes of officeholders (at whatever point in the next four or five years) with any remarkable alarm. Politicians all like to simplify financial stuff in order to assign blame or take credit at election time, but the folks in the corporate offices and those running Wall Street get up every morning and do their best to make some money whatever the weather.
 

Strokerswild

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I just bought a new F-150, so I helped! LOL

I couldn't bring myself to buy another FCA product after my '12 and '13 Wranglers. Loved them for the most part, but hated the lack of reliability.

Haven't owned a GM product yet this century, but that new Corvette has me thinking.....
 

Strokerswild

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Hey, that they offer such deals is on them....
 

Cobra Jet

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The below is from this link, Ford Motor Company isn’t floundering and the Company is strong...
https://www.fool.com/investing/2019/01/16/63-years-later-what-can-investors-learn-from-fords.aspx

Moody's cuts Ford's rating -- despite its strong balance sheet
As my Foolish colleague John Rosevear recently noted, the Moody's downgrade was somewhat confusing. Moody's expects restructuring costs to weigh on cash flow for the next few years, but it seems bullish about Ford's efforts to boost its profit margin over time by exiting unprofitable markets and product lines, while refreshing its core offerings. Moody's also acknowledged that Ford has a solid balance sheet, including $23.2 billion of cash (which exceeds its automotive debt load). Thus, the company has the financial flexibility to pull off its restructuring plan.

The main reason why Moody's is cutting Ford's credit rating is that it expects the Blue Oval's profitability to remain under pressure until at least 2022. This projection of subpar earnings in 2020 and 2021 makes Moody's downgrade understandable, as it means that Ford would be in a weak position to withstand incremental headwinds like a severe recession, a spike in commodity costs, or an all-out trade war.

Profitability in North America is set to surge
Moody's downgrade note highlights that Ford's adjusted operating margin in North America has fallen to around 8% in 2018 and the first half of 2019, after exceeding 10% as recently as 2016. The rating agency thinks Ford may get back to a 10% operating margin in its home market eventually but not for a few years.

However, Ford is already close to an inflection point for its profitability in North America. The automaker has been phasing out most of its (unprofitable) traditional car models since early 2018. An upgraded and expanded portfolio of crossovers, SUVs, and trucks will be the key to holding unit sales steady at greatly improved margins. (A recent decline in commodity costs should help, too.)
Moody’s needs to get off the crackpot analysis....
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