With $212 BILLION in corporate debt, compared to Tesla with almost zero debt, can Ford credit continue to support Model e and Ford next while banks are failing during a recession?
8 replies (most recent on top)
For what its worth, the $212 Billion debt on Ford's balance sheet is not the bad debt one usually thinks about when you hear the word debt and comparing it to Tesla's is largely meaningless. Ford credit sells bonds to raise money from large investors and then gives that money out as loans to Ford Credit customers. When the customers pay back those loans, we take our cut and over time pay back the bond holders. This is in addition to allowing us to sell more cars by facilitating the financing. But because we owe that money to the bond holders, it shows up as debt on our balance sheet. Unless auto loan delinquencies from the Ford credit portfolio hit unsustainable levels, this debt makes us money. So far the FC delinquencies seem manageable.
I wonder why they decided to move the Townhall up one week.
Poster: @uzm+1lCZ03ui
You are a Ford corporate PR Troll. No one cares about your propaganda and lies. Go back to your cave…
That debt is going to ki-l this company. With about $25 billion in cash, that cash to debt ratio is near bankruptcy levels. Of course, Bill is sucking up to his liberal elected officials friends to bail his bu-t out in a couple of years.
Canopy will be yet another money loser from Ford Next, if Bill Ford had brains he would shut this down and go back to building quality vehicles that people can afford and want to buy. Henry is rolling over in his grave.
https://www.caranddriver.com/shopping-advice/g25380817/best-vehicle-dash-cams/?utm_source=google&utm_medium=cpc&utm_campaign=arb_dda_ga_cd_md_bm_comm_org_us_g25380817&gclid=EAIaIQobChMIy-6yiNnZ_QIVp2xvBB24fAh7EAAYAiAAEgJlPvD_BwE
Canopy is toast. There are already a dozen competitors and the prices are as low as $10.
@ uzm+1lCZ03ui it’s good to know that Model e marketing has time to monitor this site and respond to all concerns that Model e is draining the company of cash.
Yes it can and it certainly will. The Ford+ Plan proves that supporting Model e future products and services will be the primary source of revenue for the company going forward. This has been presented many times to employees of the company. Plus all Ford leadership is aligned with this company strategy.
Outside investors and the mobility industry realize where the now former automotive industry is headed.
Not likely. Especially if they have to cover $2 Billion annual Ford Next expense. Repos are on the rise. But maybe if underwater owners can hang on until next year, Canopy might provide them with a video of the repo man driving their vehicle away 🤣🤣🤣🤣🤣