GM Inside News Forum banner
1 - 20 of 32 Posts

·
Registered
Joined
·
7,840 Posts
Discussion Starter · #1 ·
http://seekingalpha.com/article/103438-ford-celebrates-gm-scratches-its-head?source=yahoo

After wave upon wave of layoff notices and factory closures, Ford (NYSE:F) employees are celebrating a re-hiring event. Thanks to Ford re-starting its 2009 F-150 truck line, nearly 1,000 workers will be stamping their time card.

Ford is making a risky move. After all, its truck sales were down 27% last month and many experts say we have yet to reach a bottom in the industry. But company executives see a profit opportunity.

With one of the best-selling product lines in the history of automaking, Ford believes it must concentrate on the profitable line if it wants to ensure future success.

Officials insist that pent-up buying demand created from the credit-industry freeze is growing and truck-buyers will flock back to showroom floors over the next several months. After all, many businesses depend on reliable pick-up trucks for their daily operations.

As investors, we need to look at today’s news as less of a human-interest story and more as an in-depth look at the company’s financial situation. Ford’s willingness to put another thousand names on its payroll roster proves its short-term liquidity and its long-term odds of success.

When General Motors (NYSE:GM) and Chrysler are begging for merger assistance in a last-ditch shot at success, Ford continues its transition into a leaner, smarter manufacturer.

As of their last earnings reports, Ford had nearly twice as much cash on hand as General Motors and its operating cash flows were nearly $10 billion higher. Ford’s liquidity issues are miniscule compared to GM’s problems (see Ford's conference call transcript here, GM's here).

Even with Ford’s outlook significantly brighter than its Detroit counterparts, its share price has been drug into the mud. Over the last twelve months, shares have dropped by nearly 75%. General Motors, with a much smaller shot at survival, has seen its shares fall by 85%.
 

·
Registered
Joined
·
7,840 Posts
Discussion Starter · #3 ·
Not only pent up demand but also the weather. With winter coming, it generally rallies the people with older vehicles to show rooms.

I know that gas prices will once again rise, not as fast as they did this summer will be more worrysome, but GM and Ford basically shut production down way too quickly for the bump in the market.

Hopefully they both learn from the gas scare, and still look more into small cars and fuel effient trucks and SUVs.
 

·
Registered
Joined
·
6,484 Posts
one thing Ford does not say is that the reason why they need more labor in the US is because their Cuatitlan plant in Mexico is going offline in about 2 weeks (and will not be retooled for the 09 F150). The plant has been building F150 and Super Duties for Mexico and Latin America, but will be retooled (redesigned, expanded, and retooled actually) for the Fiesta.

This is still very good news, but Ford is not planning on a huge increase in demand - they are simple replacing a plant - but it is good news for Us and Michigan nonetheless ;)

Igor
 

·
Registered
Joined
·
8,341 Posts
I surely hope this isn't a result of gas prices (which I assume). In months from now gas prices will likely spike yet again, does this mean these same 1000 employees would lose their jobs? Would hate to be in their position.
 

·
Registered
Joined
·
7,686 Posts
I think that this is because Ford had greatly reduce their truck capacity to a point where they can sell off built up supplies of their trucks.

With gas prices down its going to give a small bump in truck and SUV sales however we all know that this isn't going to be a long term deal. Most consumers also know this and its this reason that you will not see demand get near the levels they once were during this drop in prices.
 

·
Premium Member
Joined
·
6,311 Posts
I forget where I read it (I think the Ford employee forum), but they said at the end of Sept, they had a 78 day supply of F150's.............. and they currently have a 30 day supply.

They did a real good job of selling down the 2008's, which was important, due to all of the improvements with the 2009.
 

·
Registered
Joined
·
44,427 Posts
Same was said when it was at $6... people said the same about GM at $20 as well.
And stupid me bought at $16. I mean, who'd have thought it would drop below a 32 year low?? :zippy:

Ford was at $2.30 or so.

One thing's for sure, there's a lot of value stocks out there with solid companies. Just gotta start at the bottom and hang on for the ride.
 

·
Registered
Joined
·
5,411 Posts
IMHO, I think Ford will survive this financial(& anything else) crisis.

Chrysler seems to be doomed unless something unexpected happens.

GM, I am very wary of its survival. This Chrysler "merger"(buyout) is a bad idea.
GM should be focusing on itself, like Ford has & continues to do.

GM under Wagoners stewardship has gone into a downward spiral. He is not a leader, he is a number cruncher, perhaps a good one, but he is no leader. Wagoner can be put on a Peter Principal list w/other CEO's who have run companies/corporations into a downward spiral or into the ground completely.




.
 

·
Banned
Joined
·
2,364 Posts
I think that seals it.

500 shares of Ford stock... tomorrow....
you'll more than double your investment within the next year. there's money to be made in the auto industry if you have leadership, direction, and ability. Ford does, GM doesn't.
 

·
Registered
Joined
·
174 Posts
It is not clear why they are announcing that they intend to increase truck production when it seems obvious that the price of oil will start rising again as soon as possible after the election. Maybe it's an attempt to make GM and Chrysler look incompetent while they are seeking government assistance for a merger. The real losers will be the consumers who will again be upside down in their large trucks when gas is again over $4/gallon.
 

·
Registered
Joined
·
336 Posts
if you have leadership, direction, and ability. Ford does, GM doesn't
Thats correct, Ford portray's a winning attitude, "were rertooling, changing and adding jobs" and GM is begging for money, taking big risks, shutting off lights in the toilet rooms etc... and just looking like loser.
 

·
Registered
Joined
·
7,840 Posts
Discussion Starter · #17 ·
It is not clear why they are announcing that they intend to increase truck production when it seems obvious that the price of oil will start rising again as soon as possible after the election. Maybe it's an attempt to make GM and Chrysler look incompetent while they are seeking government assistance for a merger. The real losers will be the consumers who will again be upside down in their large trucks when gas is again over $4/gallon.
Reguardless of gas prices some people still need trucks. With everyone else cutting production and a majority of trades people in Ford trucks already, and the possible loss of the Ram, I cannot see how they can loose out.
 

·
Registered
Joined
·
13,043 Posts
It is not clear why they are announcing that they intend to increase truck production when it seems obvious that the price of oil will start rising again as soon as possible after the election. Maybe it's an attempt to make GM and Chrysler look incompetent while they are seeking government assistance for a merger. The real losers will be the consumers who will again be upside down in their large trucks when gas is again over $4/gallon.
Ford is closing their Mexican F-150 and Super Duty production plant, and re-tooling it for the Fiesta and other B-cars for North and South America.

Therefore, the lost production capacity is being moved to Michigan. Michigan will now be building F-Series trucks for all of North and South America.

Jobs going from Mexico TO Michigan?! WHAT?!!!
 

·
Registered
Joined
·
5,014 Posts
As Igor and Wescoent said Ford its able to rehire this people because with the change of product in the Mexico plants , the DTP and the Kansas plant will be the sole suppliers of Fseries for the North and South America and that means that those plants will be able to have 3 shifts since they will be covering the demand
 
1 - 20 of 32 Posts
Top