As soon as Ford is out of the woods, unions and Obama will make them unprofitable again.
Also, what about their staggering healthcare and pension liabilities? Did the government pick them up?
Don’t be fooled. This is only temporary.
Remember, America’s Pol Pot is still President.
WD57..
DO some googling of what Ford has done with the Union "VEBA".
They have esentially payed it off with; Cash, & Stock Warrants. They took the UAW's ( IMHO ) variable liability of retiree health care and made it into a fixed cost and delt with it. Their Pension liabilities are not bad, but again do your research. If you also research the balance sheet you will see Mulally and his team are full steam ahead trying to pay off the "mortgage" they took out to turn the company around. They are paying off 3 to 4 billion a Qtr in Cash and if my memory is correct, and the debt is somewhere between 21 and 27 billion. If you subtract the cash on hand and what is a normal operating debt ( I have read 8 to 10 billion ) their is speculation they may have this payed off in a year or 2.
I have heard Mulally has eluded to his troops something to the effect stick with me folks, this thing will be turbocharged when it takes off, i.e. all your hard work will payoff via your good product and it will make us a profit making machine.