Whoops: Ford Might Need A Bailout After All
Ford has been busy marketing itself as America's Healthiest Automaker — but Bloomberg says that the company may need a bailout after all.
Ford Motor Co., the second-largest U.S. automaker, may have to abandon a plan to forgo federal loans as the weakening economy threatens to drive domestic sales 10 percent lower than the company’s forecast.
Ford predicts that U.S. light-vehicle sales will reach 12.2 million units this year, almost 2 million more than the annualized sales rate over the last 3 months. Chrysler LLC forecasts that sales may reach 11 million, while General Motors Corp. projected a range yesterday of 10 million to 11 million.
“The market will not reach 12.2 million units this year, no way, no how,” said John Wolkonowicz, an IHS Global Insight analyst.
Ford's predictions are based on the assumption that consumers will start buying cars once the stimulus packages start — well— stimulating. If sales continue to decrease, Ford could be in trouble.
Ford May Seek U.S. Help as Economy Imperils Sales (Update3) [Bloomberg]
(Photo:don buciack)
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FORD: Found On Road Dead. That's all I have to say.
Aren't you also using an outdated joke also? You know, the whole "XXX called and want their joke back" thing isn't exactly cutting edge.
That's too bad, the upcoming model line sounds like a winner. Especially the Fiesta and the Transit Connect.
Thats pretty clever!
signed,
F'd On Race Day and
Flipped Over Resold Dodge
masonreloaded - I agree 100%
The big three all have terrible credit now. Whether they need the bailout or not, they are 100% going to take the loans. Ford is just trying to give the perception of being on better financial ground. But make no mistake the second it looks like the loan offer might be off the table, they will hurry up and accept it. Accepting the bailout 1-2 months after the others doesn't really mean they are any better financially.
Hey dont go talkin like that my granddaddy drove a ford once and it didnt start one time in winter cuz the battery was dead but that dont matter ford totally sucks and i'd rather push a chevy than drive a ford talk to the hand FAIL.
/that should sum up half the posts in advance
@TecmoTech: you hear that sound Tecmo? It's the irony flying over your head. And yes, i realize that this post is also using a very old joke....
Shouldn't I automatically be approved for ANY Ford, Chrysler, or GM vehicle now that ((I)) have better credit than they do.
Ford has said all along that if things don't get worse, they'd be okay, and that they wanted to be protected with a line of credit available should things indeed get worse.
Nothing to see here, in other words, so move along.
@Corporate_guy: "Accepting the bailout 1-2 months after the others doesn't really mean they are any better financially. "
Nope, but it does make them look stronger, and therefore more stable. So people are going to feel more confident buying from them than from the company that may or may not be around a year from now. Ford may be on the brink too, but they don't look like it (as much), and perception is reality.
@alexcassidy: At least they aren't waiting util their money completely runs out like the other two did.
Ford? Big three? These are car manufacturers you say? Last car owned by an 'American' manufacturer was purchased over 5 years ago. It will be traded shortly for a vehicle made by a manufacturer who cares about quality and less about ensuring a select group of coffee drinkers get paid $70/hour
@balthisar: That's what I'd been hearing all along too. Ford IS the healthiest, just look at the other two. They were saying if they didn't get cash, they'd run out and shut down before the new year.
@VigilanteKitteh: Fords have come a long way. After only owning Japanese cars, I'm really looking at a Ford Edge. I love the way they look, and none of the Japanese companies have anything comparable that isn't hideously ugly.
5-10 years ago I wouldn't have considered a domestic, but the way things have gone in terms of quality, they are now on par with imports.
@alexcassidy: But they are not actually any more stable. You would have to be dumb to think ford waiting 2 months for their cheap loan means they are any better than the other two.
American auto makers should be focusing on making a product that is better and lasts longer, rather than flimsy crap cars and counting on people to buy a new one every three years.
Yea, after all they said they didn't "need" the bail-out "right now". hmm.
@nighttrain2007:
Living in Metro Detroit and being surrounded by union workers for Big 3 and numerous suppliers has made me wary of ever buying one of their cars. I have always bought foreign because U.S. has never appealed to me in looks or quality or smugness of overpaid line workers. Please, I've heard all the arguments, I know I'm in the minority (especially for the area I live in.)
Basically all the stimulus packages will do is nothing. In the most probably unlikely scenario that I get any money out of the backroom pork laden thing I'd stick it in a high yield savings account.
@jasonof2000: Only because they're finally bringing their Overseas (read: efficient) models to the USA.
I guess they *finally* got the memo that we don't all want huge gas-sucking behemoths.
@Triborough: The $600 last May didn't help me. I doubt anything else they toss my way will help either.
Funny thing, the Mondeo which looks awesome isn't selling, so much for Ford Euro Awesomeness.
The next Fusion looks good and will be a better fit for North America than the Mondeo.
First they said they needed money, then they said
they were fine, now they might need it again.
??????????
I dunno. Maybe Ford will use the money to build a special F-150 for the occasion.. The Ford F-150 Bail-Out Edition.
It's the exact same truck as a regular F-150. Except it comes with a special badge on the grill, and it comes with a $30K mark-up.
@jasonof2000: Nevermind the fact that the mondeo has been around in europe for 15 years, has won numerous accolades (not least of which is Top Gear's car of the year) and also sells in the Aussie market.
I wager if Ford had brought this car to the US instead of the Fusion we'd be seeing a slightly different story. Having been able to drive both the Fusion and Mondeo I'd have to say that I'd choose the Mondeo any day of the week. It's just plain better.
If you were Australian why would you get a Mondeo when you could get a Falcon? RWD wins over FWD every day, and this is coming from a guy who loves his SVT Focus.
And they wonder why? for has the flex - one of 3 crossover vehicles - all based on a taurus platform - and all extremely overpriced! - pretty bad when the mid level flex is more expensive then the mid level H3!! As a family man - like the idea of the 7 seats - but not willing to pay $34000.00 for it!!!
To bad - it is nice looking but has sucky fuel milage.
Drop it $10k and we will talk
@VigilanteKitteh: Just had to have a 1992 Ford Taurus pried away from me last year after it finally gave up on me after 10 years of ownership and 100,000 miles.
Lesson: your joke is old and untrue. STFU.
@wagenejm: I think they are, but the perception of cheaply made cars still exists. I have 3 vehicles, all GM, newest is almost 3 years old with +45K miles, oldest is 8 years old with +95K miles. Oil changes approx every 5K miles, spark plugs/wires and transmission fluid change at 75K miles is my normal maintanence schedule (far cry from the mfg recomendations), and they have each been very reliable.
I had a Big 3 car in the mid 1990s, and it had a lot of problems with quality, primarially from low quality parts, but I have noticed a dramatic improvement in quality over the last several years.
@downwithmonstercable: Yeah, consumerreports has said that, since Ford started re-investing money into their quality again a few years back, that their cars made in the past four or five years are now on a par with the Japanese models.
I had to buy a car recently and looked seriously at a Ford. But the Dodge was closer to my budget constraints. :-/
@wagenejm: They also need to focus on improving their responsiveness to market demand. The Japanese beat them with getting hybrid and "green" cars to market while the Big 3 were still pushing SUVs. It takes Detroit forever to figure out what drivers want and get it to them.
@my_imaginary_friends_bore_me: Factoring in benefits and the fact that they still get paid during "layoffs," you're absolutely right.
It's actually more like $80-90/hour.
When did anyone think it didn't need (want) one?