New product coming, losses cut in half, trend is good, and their credit rating is improving. Ford is recovering nicely, and with all of the “bailout car companies” going banko, Ford will continue to improve to profitability by 2010 as the economy strenghtens. Great plan or good fortune?? I think Ford has a great plan with bringing all of the European vehicles to world wide distribution….especially North America. Mulally keep it going!! FYI- Goldman Sachs put Ford Motor Co. on their “conviction buy list” yesterday….made no headlines at all….but from “junk” statis to “buy, buy, buy”….it spoke volumes in the credit world.

Ford has a great plan….unlike other companies…I’m looking at you GM! With a great plan and great vehicles out (2010 Mustang, 2010 Fusion) and more great products coming (Fiesta, next gen Focus) Ford will recover very nicely.

Ford still burned thru over $1.2 billion per month in savings. What is keeping them alive is the loans they took two years ago. If not for that they would also be asking for money.

But they are looking pretty good in the long term. What they do not say above is that Ford now has $21.3 billion in cash reserves that they borrowed. What I do not understand is why they took out $10 billion in February.

Oh, I remember. The automakers need about $10 billion in cash just to pay the bills. So ford was down to about $10 billion and since they are burning thru $1.2 billion / month they need it to last thru the year. Makes sense.

Go FORD! Too bad GM is too stubborn to notice what you guys are doing!

The automaker has been able to forgo U.S. aid because it
borrowed $23 billion in 2006 before credit markets froze. As
collateral for that financing, which Chief Executive Office Alan
Mulally called “the world’s largest home equity loan,” Ford
put up all major assets, including its headquarters and blue
oval logo.

With Carstuff having to twice mention that Ford took out loans, he must be a GM Fanboy.

@ carstuff you make it sound like that was not a good move for Ford to have done. Ford has been turning their ship around since 2005! It was their “way forward plan” and it was that forward thinking that has them out front and not begging and that gives them bragging rights and finally they are getting some positive publicity for it! Ford’s market share has gone up every month since GM and Chrysler took the money!
Go Ford!

I told everyone I knew back when Ford’s stock was at a $1 to buy buy buy. I feel like poo because when they did buy, I never put my money where my mouth was….

I knew Ford could do it…. They are the only American car company that isn’t putting out total garbage still. GM’s are only decent if you buy one that’s more than $30-40K. Anything they sell that’s less than that is crapola, and you can write off Chrysler altogether as total crap.

@carstuff, I’d rather have Ford take out loans from private business, than take a bailout from the government…

?? I even said Ford was looking good and that Mullaly played the game right . But people seem to not know that the only reason Ford is not in the same mess with the government is because they took out a $20 billion loan on ALL their assets before the crap hit the fan.

And I am for all 3 US makers, not just GM or Chrysler. I just try and use facts to support my opinions. If you see something I say that is not supported then let me know.

i still hate to hear about the big 3struggling when in fact its just gm and Chrysler struggling ford is alone in north America that’s succeeding lol

JakeK66 – I know EXACTLY what you are saying. I was saying buy at $2.45 and my father-in-law listened to me. He’s doubled his money. I wish I had back then and still might.

@ carstuff What you’re saying is true. However you are making it sound like it was bad and is now giving Ford some..false positive! That isn’t the case and your approach makes it sound like their loans were a worse idea than taking tax-payer money and that opens you up to the criticism that you are getting.

Nobody likes to hear the Big 3 are struggling but Ford has been turning the ship around for a couple years now plus the quality of the new Ford vehicles will only help the cause. They have some very exciting things in the pipeline in the next 2-3 years. Go Ford Go!

NOOO, it was very good that they took out the loans from private enterprises!!! Just do not think that Ford is going along and all is peachy keen. They have the same exact issues that GM/Chrysler have: plummeting sales, UAW VEBA payments due, pension issues, legacy issues, bond holders, etc. they are burning thru as much money per month as GM. It is just that they have the money to make it thru the year. Ford is not “suceeding”, it is hanging on and if things do not turn around they will also be asking for money.

Jake, Hoosier: I’m kicking myself too. I just couldn’t bear the thought of unloading something else at a huge loss. But you’re right, It’s probably still a pretty good investment.

I’m pretty impressed with Ford,

Ford shares climbed 69 cents, or 15.5 percent, to $5.18 .

That’s simply showing how Ford have managed to be AHEAD of the pack.

Carstuff is absolutely right. Bellow statements from Yahoo Financial:
Balance Sheet
Total Cash (mrq): 15.18B
Total Cash Per Share (mrq): 6.335
Total Debt (mrq): 154.20B
Total Debt/Equity (mrq): N/A
Current Ratio (mrq): 2.879
Book Value Per Share (mrq): -7.177

Ford left with 15 billions in cash and they do have debt of 154 billions. In addition, I pasted excerpt from Washington Post which describes Ford government loan strategy:

Unlike Chrysler Financial and GMAC, Ford Credit has been talking to government officials about receiving financing through a separate $200 billion Term Asset-Backed Securities Loan Facility, or TALF, which is being created by the Treasury and Fed to support auto, student and other consumer loans.

Ford will need help at some point: you can’t burn through reserves at over billion per month indefinitely (in 14 months you’ll be done). Among other completely mismanaged auto companies in US, Ford is less screwed up

Ford has over $21B in cash and their burn rate is going down so they have enough money to last them thru 2010. If the economy improves in the second half, plus gov’t stimulus starts to kick in and congress passes a cash-for-clunkers bill, then Ford will be off to the races making money!

Instead of bitching about Fords situation, just buy the stock (F) and watch it go up (over time).

What does Ford have new going for it – Taurus, SHO, EcoBoost (MKS, MKT, Flex) Mustang (Shelby GT500), F150 (SVT Raptor), Fusion (Hybrid) and next year Fiesta, Focus, Explorer and refreshed Edge and the Advantage Plan. Plus a solid PR machine that keeps firing on all cyclinders – Fusion 1000 miles on 1-tank, Yankees endorsement, Fiesta movement, American idol and more.

Ford needs $10 billion in the bank for day to day expenses. So they have $10 billion in available cash above that. At the current burn that is about 7 months. They have til the end of 2009 at the most before they start looking for more funds to keep the company going. Unless of course sales go back up.

And I know they are reporting $21 B in cash but Borat shows it is $15 B. What I think that means is that they had $15B at the end of the 2008. They spent $4b this past quarter which left them with $11 B. Add in the latest loan in February and you get $21B.

Greg, you are my hero! It sounds like you are in-tune with the facts and know your stuff! I work at a Ford dealership and the stuff that we have coming down the pipe is amazing, cutting-edge, class leading and class exclusive! Ford is on the right path!

Borat, does Ford have more debt than GM? I did look at a yahoo statement and it said GM owes $46B which would not include the VEBA which has yet to be paid out.

Am I right in this? That Ford has 3 times the debt of GM? I believe the below is end of year and shows why GM had to borrow more money in February to keep cash above $10B.

Total Cash (mrq): 13.97B
Total Cash Per Share (mrq): 22.876
Total Debt (mrq): 46.54B

http://finance.yahoo.com/q/ks?s=gm

carstuff, I believe that before last October, Ford was in much worse shape. GM had access to credit almost all of 2008, the bottom fell down during summer and fall when gas hit $4/gallon and recession was declared. Ford could not credit in 2007, before recession started. They could not get credit, because of their huge debt level, which is btw is you see in the statement. Eventually or rather soon, Ford will come to mama (Treasury) for a tax tit, but after they go through the last of their cash.

Ford hocked their assets in ‘06 and took out a line of credit. As of February they have borrowed all they could.

I do not believe GM borrowed any money in ‘08. For the last few years they have paid $100B into their pension funds which were fully funded until the market fell.

Guys, the burn rate is not $1.4B per month, it’s $1.4B per quarter, which is about $450M. That makes a HUGE difference. Honestly, the difference is to sell an additional $1B per quarter in sales and that’s break even time. At an average of $32,000 per vehicle, that’s only an additional 31,250 vehicles per quarter, or just over 10K vehicles per month. That’s a completely attainable goal as consumer confidence picks up and Ford continues to gain market share. Toyota has already been surpassed by VW, and if Toyota continues to play the “Japanese GM” role then Ford will be getting its #2 position back in a few years.

Minor detail: during recession (or maybe depression) there will be few and apart vehicles sold at 32 large. Majority of sales will be on cheaper models with much smaller profit margins. And Ford is not known as leader in this area, actually Honda, Toyota, Nissan, Hyundai are.
I drove my Vibe through development today and it hit me: I was the only idiot with domestic small car! Gret majority of cars are foreign, SUV/CUV – mix, minivans mostly Hondas. Couple college kids have Jeeps. I haven’t seen Ford!

Payton, the article says they burned $3.7 billion in the first quarter. There are 3 months in a quarter. So something over $1.2Billion per month.

Let me know if I am wrong.

Average price of vehicle:

“Average new vehicle cost: $28,715″

This was at start of ‘08. Will be a bit lower now.

@ borat your car is hardly a domestic all a vibe is a badge jobed matrix

where is NMOFGM ?

Vibe is far from a badge job. It has completely different interior and exterior. I cannot believe the misinformation here sometimes.

Sorry to break it to you, Carstuff.

But the Vibe is essentially a Matrix with a Pontiac badge.

YOUR OPINION doesn’t change the fact that it shares the same Platform, trasmission and engines

New body panels doesn’t change the fact that It’s a MATRIX underneath either.

Apparently you seem to be a Gm fan that’s why you bias doesn’t let you come to reality.

You know you don’t hear much from NFMOGM because with Pontiac Now Dead along with Olds, Saturn, Hummer, SAAB. GM is only Chevy, Cadiillac, And the Two Redux badges of each in GMC and Buick is all that’s left.
If they are around they will probably be smaller than Ford Motor.
I think with Toyota or VW vying for top manufacturer of the automotive world. What Ford should concentrate on FIrst and Foremost is just be the best transportation and even high technology company out there.
The Future of transportation will be a blending of various scientific and engineering disciplines. And I think Ford should go back into Aviation like they once did in WWII with the B-24 Liberator and the Ford Tri-motor Airplanes. This time go into Business Jets Ford like Honda but do it better than Honda. This way you don’t have to give up your business jets if your making them!
Then get into Robotics their are various types of robots that would be useful to help motorists in various situation get into. Get into water craft create a new class of marine water craft. This is an area that can be both fun and exciting. And eventually get into building a Positron -Anti-matter Propulsion Rocket. So we can all take are Antimatter Rocket Fords to Jupiter or Staurn for the weekend. Just chill out with a 6 pack catch some strange creature and bring it back to earth for analysis.. The hell with those that say they’ve been to Europe and all over the world. Ford Show em!. Ok I’m coming back down to earth now. Ford just stick with your current business model. The next Generation Fusion Hybrid is definitely a good start but I still want my Anti-Matter Ford Rocket to Jupiter eventually!

I think Ford is making alot of Right move but their not out of the woods yet. The Industry would take a death blow with higher gas prices again going above $6 a gallon. I say this with Tesla claiming a sedan that would get 300 miles on a Charge of electricity then ICE engine should be on its way out. We can use Oil for more important purposes other than our cars. And if they get 300 Miles per charge maybe they can get 3000 miles a charge in the future with improved batteries. There is no telling how far we can go with the right minds working hard at coming up with a solution.