Bloomberg reporting that Ford family coonsidering sale of "B" shares

[campbell53]

Bloomberg is reporting today that Ford family members are again thinking about the future of their "B" shares. See it here:

http://www.bloomberg.com/apps/news?pid=206...&refer=home

 

My favorite quote: "``The younger Fords don't believe the family should be so involved in managing the company since it leads to bad decisions,'' said Eugene Jennings, a business professor emeritus at Michigan State University in East Lansing. ``The older Fords are saying, `You've been well taken care of with money tied up in trust funds, so what are you complaining about?'''

 

And so it goes......

Edited May 14, 2007 by campbell53

[one2gamble]

and the older "fords" are right, these pissy young ones havent had to work a day in their lives. Besides, their shares do not force them to micro-manage the company. Thats a decision the share holders have made.

 

Companies do get large enough that the family largely has to get out of the way and ford has long been that large.

 

I would be livid if my family company was given up for a quick buck.

[RichardJensen]

1) If the family sells out, they should do so at a time when their stake is actually worth something. Not now.

 

2) An aggressively interfering family can disrupt things, however, family control can also impose a long-term outlook and a conscience on the day-to-day operations of the business.

 

In hindsight, Ford made many mistakes during the 90s, but the philosophy behind the mistakes was one that was shared with Chrysler and GM, not one that was unique to the Ford Motor Co. The focus on SUVs, the failure to incorporate customer research early in vehicle design, the infighting and backstabbing, the cults of personality, all of that is a Detroit Auto Industry thing, not a Ford family thing.

 

The only 'mistake' that can be directly assigned to family management was the selection of Bill Ford as CEO--and that 'mistake' has led to Ford being the most environmentally responsible auto manufacturer, the most socially responsible auto manufacturer, and (where it counts) suddenly one of the highest quality auto manufacturers. Bill also managed to undo a fair amount of the damage done by Jac Nasser.

 

And without him, IMO, they wouldn't've been able to lure Mulally away from Boeing.

Edited May 14, 2007 by RichardJensen

[sranger]

Well,

 

Good or bad, the stock shot up 5% on the news....Although the family is already denying the report...

[7Mary3]

If the Ford family sells, Ford will be a takeover target.

[jpd80]

"History is a relentless master. It has no present, only the past rushing into the future. To try to hold fast is to be swept aside"

- John F. Kennedy (1917-1963)

[FordBuyer]

1) If the family sells out, they should do so at a time when their stake is actually worth something. Not now.

 

2) An aggressively interfering family can disrupt things, however, family control can also impose a long-term outlook and a conscience on the day-to-day operations of the business.

 

In hindsight, Ford made many mistakes during the 90s, but the philosophy behind the mistakes was one that was shared with Chrysler and GM, not one that was unique to the Ford Motor Co. The focus on SUVs, the failure to incorporate customer research early in vehicle design, the infighting and backstabbing, the cults of personality, all of that is a Detroit Auto Industry thing, not a Ford family thing.

 

The only 'mistake' that can be directly assigned to family management was the selection of Bill Ford as CEO--and that 'mistake' has led to Ford being the most environmentally responsible auto manufacturer, the most socially responsible auto manufacturer, and (where it counts) suddenly one of the highest quality auto manufacturers. Bill also managed to undo a fair amount of the damage done by Jac Nasser.

 

And without him, IMO, they wouldn't've been able to lure Mulally away from Boeing.

 

 

Yes, the Ford family if it truly wants to sell should wait until better economic times and traditional domestic buyers like myself are buying new vehicles again. I know that some would disagree with me like Wall Street, but the economy sucks IMO. Auto sales have been flat to bad for long time now, and the housing industry has been bad and getting worse. Add in the dire situation in MI and other rust belt states, and the economy is about as bad as it has ever been in modern times.

 

For that matter, I could not believe that Daimler would sell Chrysler at basement price instead of waiting for better times and much better price. It is to me like selling convertible in winter instead of waiting for summer. You just don't buy high and sell low. I believe that within 6 years if not sooner we will see 20 million new vehicle year and then everyone will feast until their bellies are full. It's a matter of being patient and waiting for better times. These are not good times. If these were good times and Ford was doing terrible, then maybe yes. But I think Ford can do much better in time. I know that Ford does not have a lot of time anymore, but I am still optimistic to a point. I'm not selling my holdings just yet, but I do have plan to sell if things don't meet my goals for this company. Next summer should tell us a lot more, especially after restructuring is complete and UAW contract is in place. Just too premature to sell just yet IMO.

[LSFan00]

They might be reading Farago's deathwatch and wondering if just maybe the stock is worth more today than it will be in 5-10 years.

[RichardJensen]

They might be reading Farago's deathwatch

If they are, they've been put out by his inaccuracies and omissions, and they don't put any stock in it.

[RichardJensen]

For that matter, I could not believe that Daimler would sell Chrysler at basement price instead of waiting for better times and much better price

Chrysler had suddenly become Grandpa's door knob collection to DB. In other words, they were willing to pay to get rid of it.

[Blue II]

Elena Ford, Edsel II's cousin has offered to buy any "B" shares that may be for sale. The family could still controll 40% with a smaller family group.