Ford made $2.1 billion

[buds87gn]

Now thats profit! they didn't take money from TARP to show profit like the other guys... too bad we don't have control over our 60% of GM shares, because i sure would love to take it and invest it in FORD...

[cees67]

love hearing it !....they saw the writing on the wall and reacted.

[oestek]

Now if we could just come up with a "cash for politicians" scheme to trade in the old worthless units, we'd all be in better shape!

[moreHP]

It sure is nice to hear of an American company doing well these days.

[JustinB]

Now if we could just come up with a "cash for politicians" scheme to trade in the old worthless units, we'd all be in better shape!

LOL!! Amen!

[Bryce]

Now if we could just come up with a "cash for politicians" scheme to trade in the old worthless units, we'd all be in better shape!

Best quote of the year!!!!!!!!!!!!!! That is pure awesomeness.

[JEFFTATE]

Good for Ford !!
Long live American car companies !!

[MrQuick]

:twothumbs

you gotta admit the US is putting out some good stuff now.

GM isn't too far behind.


vince

[killer69]

Now if we could just come up with a "cash for politicians" scheme to trade in the old worthless units, we'd all be in better shape!


hahaha but what would you trade them in for NEW Worthless units?????

[wmhjr]

I am not bashing Ford, and am happy that they are at least in better shape than GM or Chrysler. However, we need to recognize why they didn't need TARP funding. Quite frankly and bluntly, it was not only because the business "reacted better" in the way people here may think.

Ford closed 17 plants and laid off 50 thousand workers in the US between 2005 and 2008. They also executed a stock swap with investors a year ago, saving about 28% on debt. It's also because (even as Fords Alan Mulally stated over a year ago) that Ford has become more of an "OEM" and has drastically reduced what they actually "manufacture" and instead has outsourced the majority of their actual manufacturing.

Please note that I am not criticising these actions at all. Just providing a clarification that many here would be opposed to ALL of these activities (cutting jobs, plants, manufacturing, and stock swaps) but they have clearly allowed Ford to improve from a record losing quarter a bit more than a year ago.

[FoxGranadaChuck]

Now if we could just come up with a "cash for politicians" scheme to trade in the old worthless units, we'd all be in better shape!


Amen brother!!! :yeah::yeah::yeah:

[killer69]

I am not bashing Ford, and am happy that they are at least in better shape than GM or Chrysler. However, we need to recognize why they didn't need TARP funding. Quite frankly and bluntly, it was not only because the business "reacted better" in the way people here may think.

Ford closed 17 plants and laid off 50 thousand workers in the US between 2005 and 2008. They also executed a stock swap with investors a year ago, saving about 28% on debt. It's also because (even as Fords Alan Mulally stated over a year ago) that Ford has become more of an "OEM" and has drastically reduced what they actually "manufacture" and instead has outsourced the majority of their actual manufacturing.

Please note that I am not criticising these actions at all. Just providing a clarification that many here would be opposed to ALL of these activities (cutting jobs, plants, manufacturing, and stock swaps) but they have clearly allowed Ford to improve from a record losing quarter a bit more than a year ago.

good point....... but if thats what it took to turn a profit then so be it, maybe now they can look at reopening and rehiring????

[wmhjr]

good point....... but if thats what it took to turn a profit then so be it, maybe now they can look at reopening and rehiring????

Like I said, I did not mean it as a criticism. One other thing - Ford also took out a $23 billion loan 3 years ago as they faced bankruptcy. That loan was at very good rates, and kept them afloat during some very very bad times. It was simply good fortune that they did this just BEFORE the housing bust.

Again, absolutely no criticism of Ford at all. Just a reminder of exactly why Ford is in better shape today than GM or Chrysler. Much like PNC bank here locally, who was in real hot water about 5 yrs ago, and had some sanctions preventing them from taking additional risk. As a result, they come out of the Housing bust looking like champs - though it was none of their own doing. Just good luck. Good for them.

[buickfunnycar.com]

[QUOTE=wmhjr;666227] One other thing - Ford also took out a $23 billion loan 3 years ago as they faced bankruptcy. That loan was at very good rates, and kept them afloat during some very very bad times. It was simply good fortune that they did this just BEFORE the housing bust....

I don't look at that as good forture,rather a solid business plan put in place by newcomer Mulally...he saw the writing on the wall and cut all their losses by selling underperforming dead weight and securing loans at great rates...great business savvy if you ask me.

Try buying a Fusion right about now and I'm not talking about a hybrid,I need 12 more to fill an order and there are none to be had,hottest selling Ford product.

[wmhjr]

[QUOTE=wmhjr;666227] One other thing - Ford also took out a $23 billion loan 3 years ago as they faced bankruptcy. That loan was at very good rates, and kept them afloat during some very very bad times. It was simply good fortune that they did this just BEFORE the housing bust....

I don't look at that as good forture,rather a solid business plan put in place by newcomer Mulally...he saw the writing on the wall and cut all their losses by selling underperforming dead weight and securing loans at great rates...great business savvy if you ask me.

Try buying a Fusion right about now and I'm not talking about a hybrid,I need 12 more to fill an order and there are none to be had,hottest selling Ford product.

No, actually it was good fortune - period. They did NOT make a deliberate decision to secure loans at a great rate. They were at the end of their rope, and needed the infuse of capital to avoid bankruptcy - period. Mulally was very effective at selling the plan to Wall Street and I'm not criticizing him. But it was truly a last ditch effort to avoid bankruptcy - period. Mulally even directly acknowledged this in his recent keynote speech at the NY Auto Show. Had Ford not been at the edge of the cliff at the time they were, it is unlikely (translate no way) that they would have gotten the $23B. Had it happened a year later, they'd be in the same mess as GM - but without quite as good concessions from the UAW to be honest.

Again, the plan about closing plants and reducing the workforce as well as outsourcing is certainly a deliberate action designed to optimize their business. That was deliberate. The borrowing of $23B at exactly the right time was pure accident.

[MrQuick]

Right but getting the bail out in 96 and having to get things in order before the economy failed was more good timing than fortune.

and i don't believe GM needed the money stay afloat but more so to improve its structure.
vince

[wmhjr]

Right but getting the bail out in 96 and having to get things in order before the economy failed was more good timing than fortune.

and i don't believe GM needed the money stay afloat but more so to improve its structure.
vince

You're kidding, right?

Ford was at the brink of bankruptcy in 2006 - we're not talking about '96. If the plan was so great in '96, bankruptcy in '06 sure makes you scratch your head, doesn't it? I fail to see any deliberate planning whatsoever on Fords part as it pertains to the $23B - period. Let's make it simple. Even Mulally specifically states that in '06 they were about to file bankruptcy if they could not get the emergency funding (the $23B). They didn't pull the trigger because of some omnipotent savvy plan. They did it to keep the doors open.

As for GM needing not needing the money - are you kidding? GM was at deaths doorstep. They couldn't get any more capital, their liabilities were huge, and their run rate was catastrophic. GM needed BANKRUPTCY to restructure. They needed CAPITAL to operate.

[wmhjr]

BTW, just to be clear - I do respect Mulally. And I do agree that they started taking deliberate action to solve their problems - part of a plan. That included plant closures, workforce restructuring, and some manufacturing and logistics outsourcing. Those were pretty well thought out - even if they were painful.

But the money? That was pure luck.

[jeff s]

Still about $21 bil in the hole. Wait until Ford's balloon payments come due.