And the plants were shut down less than two weeks, imagine how much worse Q2 will be.
The only expense that is big enough to make a difference is salaries.
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@2lqo New product launches = new product recalls x5
No, plants were shut down since early Feb and (China) and early March (Eu), then US last. So one would expect to lose that much money.
The 2nd qtr will be the kicker; will have to have huge production and sales in 3rd and 4th qtr to have any hope of an OK year. A lot will depend on new product launches...
Bond holders can get screwed without a bankruptcy. Companies can renegotiate debt with bond holders with just the threat of bankruptcy meaning that bond holders would get nothing. It’s the main reason why Ford stayed out of bankruptcy in 2009 and it could happen again.
Good point : @1hhh+14w5IzUZ
One should also remember which debt holders get their money first when a company is bankrupt.
Take a good look at the numbers. How much interest are they paying quarterly to service their existing debt? 1.5 billion? Why are they paying 5 times the interest rate of us treasury inflation adjusted bonds?
Remember what happened to bond holders of former Chrysler, former GM, MCI, Enron, Arther Anderson and many others companies people invested in even while the companies were in death throws
Before buying please remember huge multinational companies that went bankrupt. I personally remember Ashton Tate and the launch of dBase IV. How could such a huge company with such an important product screw up their flagship product? They did and and the poor launch k–led the giant of the software industry.
Bill Ford is worth less than $1.5B, Elena Ford may be worth $1B. The rest of the family are not billionaires. Doubtful the family is worth $8B.
The article was updated to show there has been a lot of interest in the $8B of bonds
Odds are the Ford family has first right of refusal on the bonds to compensate for dividend loss
I am in the same situation – 11 percent could give me over $150k/year on top of my Ford pension. That's what I would call a bountiful retirement!
That 11% yield on Ford bonds is so tempting. I would jump all over that if I was sure Ford would survive until 2030. But as a retiree I am not going to risk it. It's a sure thing like my pension, unless Ford dies!
Hackett, the ring leader of narcissistic losers who think they know how to run the business. He and his side show freaks commence the hand waving and parlor tricks to divert the eye from how horrid the auto business is going. Take him out of the game Bill!!!! If you are concerned about legacy, this is not the man to preserve it, nor is the #2 goofball Farley who always looks like he's high on something. We need some a– kickers at the helm, or else we are done! That plain and simple.
As for the virus k–ling interior, could we please concentrate on making high quality products that people want to buy that don't require $5k+ rebates to move them?
Please?
And yet what do they do? Promote a ton more people. Needed to do that because their Smart Redesign that was supposed to be brilliant was clearly nothing more than a sham..
This man is so far over his head - still amazed he has a job, just mind blowing.
Didn't Hackett just say in an interview that Ford vehicles will have virus k–ling interior surfaces??
I had to stop reading the article to go throw up.
Guys - I really feel sorry for Ford Motor - this is your leader??? OMG
Correct link https://finance.yahoo.com/news/ford-taps-junk-market-cash-131155087.html
According to this article so far Ford has lost $8B. We are burning about $1B/week. But we just entered the junk Bond market and will be offering 10 year Ford bonds at 11.00%
https://en.m.wikipedia.org/wiki/Zotye_Z100