I sometimes wonder how anything is even running at this place anymore, considering our debt. This is not normal.
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Ford carries higher debt than other domestic manufacturers since it still owns its captive finance company. Ford Credit issues bonds that are paid back as customers pay back their auto loans. For all Ford Credits debt there’s an equal receivable on the books to offset. The only thing that matters is equity
@hn+1jnz6vx62 you seem d-mb.
Ford Credit has to remain a separate company because it is considered a bank. It would be against the law for Ford to put a bank under Model e.
Post ID: @gn+1jnz6vx62
Maybe Ford Credit should be moved under Model e? After all, in the future all the product that Ford Credit borrows money to customers for will be from Model e anyways?
Wouldn't it be more efficient to the company this way? Not to mention much improved business sense and leadership.
The majority of the debt are Ford Credit loans. I didn't look to get a specific breakdown. Ford's debt is rated as BBB-, just barely investment grade. The current risks are a steep recession and high unemployment. If people can't pay back their loans to Ford Credit, Ford Credit will have to write-off the debt which will impact FoMoCo. Additionally, a lower debt rating will increase costs to borrow. If you are really curious about the balance sheet, look at Ford common stock outstanding shares compared to other companies of similar size.
Good thing you aren't running the business....wait a minute...maybe you are. Yeah, this kind of thinking is what loses you billions 5 years in a row without a success plan that actually seems to work. Go teach basket weaving, or something where intellect like this can't do any damage.
Model e is never going to work and should be shutdown soon to save the company
I am not concerned. We have the Ford+ Plan to carry us through any downturns you may be worried about.
Don't forget we haven't rolled out our latest generation of Model e products and services yet. There will be a strong boost when Ford does.
The debt is troubling. Ford is two negative quarters away from defaulting. Default and you can't get me credit. If you can't get more credit your operations cease.
This is exactly what was happening in 2008. That's why Stellantis and GM went bankrupt. Ford mortgaged the farm to prevent it (if they file for bankruptcy the Ford family preferred shares go bye bye).
This is the reality folks. One downturn and Ford is cooked.
Ford or America?
and yet 45B in equity, assets - lability
Yeah, it actually is normal. Modern companies carry an extrodinary amount of debt. Ford isn't the worst by a long shot. Quality? Recalls? Now that's a different story. Debt is normal.
Tech debt?