Read Bill Ford's lips: No bankruptcy for Blue Oval
Ford Motor Company’s Chairman and CEO Bill Ford is ruling out bankruptcy for the Blue Oval. The Henry Ford scion believes that the company’s ‘strong liquidity’ ($31 billion in the coffers), downsizing efforts and profitable overseas operations will buoy the No. 2 automaker’s fortunes.
Ford has turned in three straight years of profits globally (including $2 billion in 2005), but that’s a 42-percent decline over 2004, and the Blue Oval lost $1.6B in North America, with market share down to 18-percent (it was 26-percent just ten years ago).
Ford did acknowledge that American auto industry is facing unprecedented challenges: “We’ve never had these kinds of wind buffeting us.”
The company’s NYSE shares fell 11 cents on Wednesday to close at $7.57.
[Sources: Associated Press via Newsday; Stern.de]
Reader Comments (Page 1 of 1)
Bonita Fernandez 9:43AM (4/06/2006)
Great news, Bill.
Does it really matter if your company is #1, #2 or #5 in size? You should look instead at striving to be #1 in Quality, as least as far as the "domestic" automakers.
What matters is that you're fixing the problems and showing the American buyer -- and your employees -- that you're in it for the long haul.
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Richard Warren 10:44AM (4/06/2006)
#1 It does make a difference of position, for a variety of reasons.
Pricing from suppliers, if you are the largest, you are going to generally get the best pricing on your supplies, parts, equipment, this includes terms.
Bragging rights, lets face it, would you say the same, does it matter if the football/baseball or other team you support was #5 instead of #1. There is a certain mentality that if you're not #1 you're an also ran (not really true but perception)
Depending on how you run your company, more production from the same amount of workers or a small increase in workers amounts to generally more profit Key word there, generally.
I agree with you on your quality comment, each company should strive for the best, Import or Domestic.
There is something else about bieng number 1, you don't have to be number 1 to be the most profitable, being number 1 costs something to get there and maintain that position.
That said: Being number 1 in size and sales still counts for a lot.
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Robert 11:13AM (4/06/2006)
Ford is #1 in nothing other than recalls and market share declines anyway so what is your point? #1 in profits would be between Toyota and Porsche. #1 in sales by brand is Chevy. #1 in the world sales is GM but soon to be Toyota. Ford will be #5 in the world when all is said and done behind 1) Toyota 2) GM 3) Daimler-Chrysler 4) VW
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Robert 11:21AM (4/06/2006)
Ford is 1 in nothing other than recalls and market share declines anyway so what is your point? 1 in profits would be between Toyota and Porsche. 1 in sales by brand is Chevy. 1 in the world sales is GM but soon to be Toyota. Ford will be 5 in the world when all is said and done behind 1) Toyota 2) GM 3) Daimler-Chrysler 4) VW
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jamie 12:14PM (4/06/2006)
Nothing to worry about here.
Ford is solid as a rock. $31 billion is plenty of liquidity. All they need are a few good market hits...like Mustang. Fusion seems to be doing well, but, no doubt, well below expectations. It's just too stodgy looking. Hopefully they will address that issue for next year's model.
And now GM with $19 billion in the bank, plus it's sale of 51% of GMAC, which adds $14 billion to their balance sheet brings them up to par with Ford. The race is on! "Who's on first?"
Don't count these tired tigers out yet.
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iQuack 6:21PM (4/06/2006)
Ford won't go BCT unless GM does.
If GM goes BCT and subsequently reduces its costs and UAW's stranglehold, Ford will be the highest-cost auto producer and might also seek BTCY.
Likely that before that happened, the UAW might finally pull it's brainless head out of its ass and make concessions that should have been made long ago.
It's the unions that are killing these companies now.
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Brian 6:03AM (4/07/2006)
Ford definitely has a much better outlook than GM. They don't have a great product line, but a solid one, from small car to big. They do need to keep it fresh though. and it looks like they will be. the five hundred refresh is great for a good idea done almost right. If only they'd bring some of the goods from europe. Plus they have the Mazda investment. I'd imagine Ford to be a bit healthier than GM in a couple of years.
and it's not the unions that are the problem. it's their leadership. when our economy started moving from a manufacturer economy to a service based economy, the leadership decided to focus vertically on the last manufacturing jobs, when they really should have been thinking horizontally and recruiting more service based people. Unions only work when you have the working masses on board, and the leadership really hasn't gathered those masses together.
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