• Apr 4, 2010
The latest musical theme for Ford workers and shareholders could be Junior Mafia's "Get Money." The Blue Oval just told its salaried employees that 2010 bonuses would average three percent. Not only does that reinstate the bonus system missing for the past two years, it rewards salaried employees the same way it rewards executives. Of course, it depends on the year's corporate and individual objectives being met, but there are few better ways to help ensure targets are delivered upon than by promising a bunch of extra credits in the form of greenbacks.

Employees aren't the only folks at the Ford cash machine: banks get a dose, with Ford revealing it will write a check for almost ten percent of its debt by next Monday, and the UAW is looking at a jackpot of more than one billion dollars by cashing out stock warrants with a nearly 50-percent profit between their purchase and sell prices.

Make no mistake, Ford still needs to keep this up for a while yet – $31.45 billion in debt remains to be paid to the banks, and $7 billion remains due to the UAW's Voluntary Employment Benefit Association (VEBA) for employee pensions and healthcare. But when you can pay things off and have enough left to spread some cream around, well, that's a good start to the year.

[Source: Detroit Free Press | Image: Karen Bleier/AFP/Getty]


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  • 28 Comments
      • 4 Years Ago
      The world is a big place. The US holds 5% of the worlds population, but 35% of GM's employees (according to your own statistic). So what is your point? These days, every car company (and most any company of similar size) is essentially a global corporation, and every car is built with parts sourced globally. Who builds what where, and with what parts is not relevant.

      However, there are many factors that ARE relevant, including:

      1. Where the profits go
      2. Where the intellectual property is held and developed
      3. What governments/communities are they loyal to, and what governments support them
      4. The business culture of the company

      Regardless of what Toyota would like you to believe, they are very much a Japanese company, just as Ford/GM are very much an American company.

      Arguing otherwise just makes you look like a clueless fanboy or hater.



      • 4 Years Ago
      I would guess, that since you are a Toyota fan, that you are unfamiliar with government agency purchases, and business purchases. These are considered fleet sales, and are generally purchased from Ford, GM, and Chrysler. These vehicles are driven to high miles, for many years, so they do not detract from vehicular resale.

      You should be happy that business's are starting to buy again, as that is a good sign. However, I can understand your angst, as few business's pick Toyotas.

      Good, profitable sales, are good, profitable sales.
      • 4 Years Ago
      Toyotadiehard
      Toyota currently is leading the league in fleet sales with 16.27% of the fleet sale pie.
      Ford holds 12.38%
      So what were you saying about dumping a majority of your vehicles into fleet???

      http://www.automotive-fleet.com/News/Story/2010/04/Gross-Value-of-Fleet-Commercial-Prices-Increases-by-1-35-Billion.aspx
      • 4 Years Ago
      This is a good way to keep up the morale among everybody so that everyone would keep their eyes on the prize. I wish they would issue a dividend for us shareholders ;)
        • 4 Years Ago
        lol shutup. You've allready quadrupled your investment in one year!
      • 4 Years Ago
      a 58% increase in fleet sales is not the same thing as fleet sales being 58% of the sales increase nor it being 58% of sales.
      • 4 Years Ago
      I just hope they don't Bone Us in the process.
      • 4 Years Ago
      wat
      • 4 Years Ago
      SINCE 1995 I AVEOWNED 14 NEW VEHICLES ALL AMERICAN, HOW STUPID NOW ALL IMPORTS.... NISSAN WHAT WAS I THINKING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.
        • 4 Years Ago
        how many of those cars do you still own? Why did you sell them? long commute? I had a coworker that had 150Mi commute each way. He was going through cars like some people go through shoes.
      • 4 Years Ago
      Great news for Ford. I hope that they will take some of those profits and continue to reduce their debt load. I realize that they are already paying back those loans on a regular basis, but the more they repay now the better off they will be in the long run.
      • 4 Years Ago
      Imagine how strong Ford would be if they paid their debt off.. 1st.
      Progress at FoMo is good.
        • 4 Years Ago
        "why should I invest my money, which costs me X to make, when I can invest someone else's money, on which I only pay 4% interest."

        Because when the sh#t hits the fan, like when there is a mortgage crisis or something, and sales go down and profits dry up .... you're screwed paying for operations AND debt. But, hey, worked for GM.
        • 4 Years Ago
        The debt to capital ratio is extremely important for a company. The standard thinking goes "why should I invest my money, which costs me X to make, when I can invest someone else's money, on which I only pay 4% interest." In many cases, it's cheaper (this is getting into economics and business finance, which can be confusing) to borrow money for R&D efforts and other operations, than it is to make the money yourself. Thus, companies borrow money all the time.
      • 4 Years Ago
      Great going Ford.
      • 4 Years Ago
      wat
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