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FORD: No Longer Second Best

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FORD: No Longer Second Best

Post by Rickaren »

Ford Motor Company No Longer Second Best
October 20th, 2010

It seems certain that the Ford Motor Company, (NYSE: F) founded in 1903 by Henry Ford and with worldwide operations, is the only American automobile manufacturer that will survive the Global Financial downturn. Ford, unlike General Motors and Chrysler, did not need to resort to borrowing billions from the federal government.

This ability to stay independent from government, has improved both the Company’s reputation and its appeal to new customers.

Ford, usually in second place to General Motors, is emerging as the premier US automobile company. It has increased sales and market share particularly in the US.

Ford’s sales in February 2010 outdid the sales of GM something not seen for over a decade. The best operating profit for six years also occurred in this quarter. Its share of the US market was 16.6% in the first quarter. Market share was 2.7% in 2009.

Industry analysts tend to believe that Ford was also helped by the huge recall of Toyota vehicles.

In July 2010 Ford announced earnings of $2.6 billion earned in the second financial quarter of 2010. This being the fifth quarter in a row the Company has been profitable.

The Company expects to have favorable cash to debt ratio by the end of 2011 despite a lower profit forecast in the second half of 2010, due to seasonal factors.

This favorable position enjoyed by the Ford Motor Company stems from the decision in 2006 to borrow $23.6 billion. This enabled Ford to develop and market fuel-efficient vehicles. The range of new products included an update of the Taurus sedan which saw sales of this vehicle increase by 96%.

There was also a cash flow remaining, which enabled the Company to stay afloat when the sales dropped in late 2008.

Moving out of the luxury car market and selling the up market brands such as Jaguar, Land Rover, Mercury and its Volvo subsidiary, enabled Ford to focus on the core brands.

However Ford was not unscathed. In 2008 it posted a debt of $25.8 billion and a cash flow of $24 billion. It was prepared to borrow from the federal government if the economy worsened.

The company plans to eliminate around $10.4 billion in debt by distributing cash and stock to debt holders.

Ford hopes to remain on top by controlling its debt and using Ford Motor Credit shares to persuade bondholders and other creditors to support its restructuring initiatives.

LINK: http://www.americanconsumernews.com/201 ... -best.html
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Re: FORD: No Longer Second Best

Post by RStabb »

Ford is staying afloat by selling off the mistakes of Jac Nasser.

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Re: FORD: No Longer Second Best

Post by ctrlraven »

Ford FTW!
1989 Ford Mustang 5.0 LX Sport
2004 Mercury Marauder
2006 Ford F-350 Powerstroke 4x4 Amarillo edition
2008 Ford Taurus Limited AWD
2010 Ford Fusion Sport FWD

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Re: FORD: No Longer Second Best

Post by sleeper357 »

I am no fan of Jac Nasser but consolidating Mazda was smart but land rover and volvo was a wast and only served to stroke his ego.