I really cannot understand how all of our management updates the last few weeks are so calm and relaxed and focused only about all of our medical support. I am glad we can help with medical supply. So for tge meat. We have struck icebergs every quarter for the last two years. I would think it's all hands on deck and all lifeboats launched, emergency actions immediately. But there is no sense of Ford is at a pinnacle. Somehow we have borrowed cash to burn through September while not producing vehicles. How does this make sense?
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Agree. Expect layoffs and cost cutting in late 2021 - 2022. It will be necessary to address all of the new debt.
Right now Ford needs good PR as proud, confident, great company.
Wall Street likes liquidity. Liquidity means Ford will make it to "the other side". The government provides liquidity by buying corporate dept. The government does not want companies to shed jobs.
Wall Street usually likes layoffs, just not now.
Maybe they are so calm because they know things you don't. For instance:
(a) Could be they know there are plans in the government to prop up the automakers with operations in the US, starting with the Big Two and FCA, ala loans and/or government sponsored incentive programs aimed at stimulating demand. Just waiting for those to be implemented, which if going to happen would likely be in 3rd/4th qtr this year once the autos are semi back online.
(b) already gamed the likely outcomes/scenarios and have planned for them, and are waiting to execute those plans.
What could those plans be? Depends - if things get rolling in May and fully back online by end of 2nd qtr, might be they go with just furloughing people (either 4 day work weeks or rolling mandatory week off, unpaid of course) through the end of the year for everyone. That and maybe combined with letting more people go (either agency/contract, which has already begun in many areas, plus targeting a select few blue badge people, too).
If it takes longer than 2nd/3rd qtr, I would the first option plus also closing down/selling more unprofitable areas of the company, like project Blackhawk, only this time targeting the China operations (i .e selling the JV operations to the in country JV partner) to stop the losses on the books.
Worst case scenario? It is projected to take to 4th qtr or longer to get back to any sense of normal operations, then I would expect either a protected bankruptcy (like GM/Chrysler did in 2008) or a merger...likely sugar daddys would be VW , or maybe a Japanese company like Honda or Toyota (has to be a conservative company that closely matches the risk adverse culture of Ford)
All the above being said, who really knows. Only thing I do know is that upper management & Ford family have game planned several options and will pick which ever ones match the on going scenario(s) that unfold....
Mr. Hitchcock: Have you heard of the “calm before the storm”?
A humane farmer treats his livestock well, up until their last moment, when they are slaughtered as quickly as possible. That is humane. It is also less messy than a panic stricken animal flailing about and as a result causing a big mess.
If the leaders at the FoMoCo are not telling you much, that’s probably why. Though there is nothing humane about the company’s many failures and strategic missteps of the past few years, which are directly due to ineptitude at the top and the culture of sycophantic behavior that is the most essential element of career success.
The DPS transmission. The botched launch of the Explorer. WTF? The decision to ax the Fusion. The expensive bet on costly aluminum bodied and turbos for the company’s cash cow, the F series.
The Ford family doesn’t appear to care a whit. Look at who they made CEO.
Most salaried people at Ford have too much invested personally to leave. I feel bad for them, and to a lesser degree, their peers at FCA and GM, though GM moved relatively swiftly to cut salaries, to their credit.
But Wall Street loves layoffs. So, Hackett will probably cut heads to try to score points with Wall St. The longer he does nothing, the more likely this is.
There is your silence or inaction.
In the past Ford Credit posted gains when Ford Manufacturing lost money.
Bloomberg predicting Ford Credit will lose billions also.
https://www.bloomberg.com/news/articles/2020-04-20/gm-and-ford-face-billions-in-losses-from-historic-car-price-drop
Ooops. I meant precipice. At the bottom of the ocean, under a volcano, during an earthquake. NOT pinnacle.
Ford is not at a pinnacle. It is at a precipice.
I IMPLORE EVERYONE TO LOOK UP FORD STOCK. YAHOO HAS NICE
OVER VALUED / UNDER VALUED DESIGNATION.
FORD IS OVER VALUED!!!
I COMPARED IT TO NUMEROUS OTHER STOCKS, GM, FCAU, MRO, BAC, ETC...
ALL ARE UNDERVALUED, EXCEPT FOR FORD!!!
GOOD LUCK WITH THAT!