But I'm Buying American this time around.
Posted on 03/18/2003 12:16:42 PM PST by sourcery
Willie, this is called serious trouble.
Most frightening are Ford's financial statements, in particular its balance sheet. At December 31, 2002, the company had only $5.6 billion of stockholders' equity, compared with $162 billion of debt. Of course, this includes the financing activities of Ford Credit, so the balance sheet is partly that of a bank. Even so, a decline in stockholders equity from $18.6 billion in 2000 to $5.6 billion in 2002 suggests that all is far from well, and that the company's financial flexibility is extremely limited.
Ford is on the ropes and it looks like in the not too distant future, you will be able to post the Mother of all Layoff threads.
I thought it never would. (Maybe next time a brief excerpt, with a simple link to the rest of it, would suffice?)
But I'm Buying American this time around.
In Michigan there are more members of the teachers union than there are members of the UAW. Forbes wrote about this a few years ago.
I wish I could.
Unfortunately, it is no longer available online at the original source Automotive Industries, and what I have is what I managed to salvage from a Google cache.
What I'd really like is a source for more current 2003 information.
I'm still looking, but I haven't come across anything yet.
Heck Ditto. Ford's debt is about the same as its annual revenue.
That puts them in a helluva lot more solid financial footing than the federal government, and that doesn't seem to phase Dubya or the bushbots one iota.
Normally I like to blame unions for companies problems, but Ford brought this upon itself. GM is competing even with the high union costs.
First problem that Ford has a poor concept of customer service. About two years ago the vice president of Ford quit because, the customer service department wasn't allowed to inform engineering of any customer complaints. According to this vice president the rationale for this, was that Ford didn't want to risk having to issue recalls based on customer complaints.
Piss, poor engineering. I should admit I am a bit biased against Ford, because I had to recently trade in my 98 Ford Contour, because of mechanical problems that would cost three or four thousand dollars to fix. I had this car for five years. (Prior to this I had two other Ford vehicles, and I didn't have to many problems with them.) About every six months I would get a new recall notice for something that needed to be replaced on this vehicle. I think I was up to 6 or 7 recalls on this vehicle. In addition, this doesn't include the items on the vehicle that I had to be replaced for free, because Ford extended the warrenty on certain parts. (I wish they would have told me of all of the warrenty extentions, because after I traded in my car I found out from a friend that the struts would be replaced for free.)
Ford needs to reign their dealers in. When I was shopping for a new vehicle, I thought I would see what Ford was offering. After walking into the showroom I thought I was going to get raped by the sales person. He put so much pressure on me, that afterwards I had to go home and take a shower becuase I felt slimy. The Chevy dealership where I ended up buying my car, I felt more relaxed and confortable there. And they were about $2000 cheaper then the Ford dealer for similar vehicles (Escort ZX-2 verses a Cavalier.)
After these experiences with Ford I will never ever set foot on a Ford lot again. As far as I am concerned if Ford goes out of business, I wouldn't shed any tears. I fact, if Ford declares bankruptcy it might be a good thing, becuase it would end Ford legacy costs, union contracts, and I think new management would be a good thing.
You're spreading too much doom and gloom, Ditto.
What's the worst that can happen?
Ford goes bankrupt, screwing current stockholders who've invested their retirment funds.
But China will buy the assets for pennies on the dollar and keep the factories open.
It should make the liberatarian free traders very happy.
Then the educated superior one has the same motive as the uneducated inferior one ---they both want more money. I'm not pro-union but why should a CEO be able to demand $1 million or more a year and it's okay but a union worker shouldn't ask for $30,000 a year? It's not like anyone is the owner, only stockholders are the owners ---how do CEOs get by with their outrageous salaries?
China.
I'll only buy stock in a company where the union workers are making $30,000 a year and the CEO makes 3 times that much.
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