GM slashes truck production by 140,000

[DearbornDerek]

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/804280420

[salsakingcpa]

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/804280420

 

gm might as well shut down (exaggeration) its entire turck (doesn't that sound better than saying truck) division because ford, chrysler, and toyota

have more up to date trucks. the best thing gm can do is shut down its gmc division, and boost chevy silverado division, but

that's not going to happen

[catan70]

GM has a few problems on their hands. For one gas prices, but they arent the only ones. Two is ford and dodge both have revised trucks coming out later this year and GM's already look dated. Three, they are ugly as all get out and lastly it doesnt have a blue oval on it. Besides someone being a diehard GM fan i dont think they are going to have much appeal at all to the public once our trucks are out. I think GM is sweatin bullets right now. Gas prices are high, ford has a new truck coming out and they are sittin on a new dated ugly design.

[P71_CrownVic]

GM has a few problems on their hands. For one gas prices, but they arent the only ones. Two is ford and dodge both have revised trucks coming out later this year and GM's already look dated. Three, they are ugly as all get out and lastly it doesnt have a blue oval on it. Besides someone being a diehard GM fan i dont think they are going to have much appeal at all to the public once our trucks are out. I think GM is sweatin bullets right now. Gas prices are high, ford has a new truck coming out and they are sittin on a new dated ugly design.

Don't forget the greedy UAW that is screwing them over.

 

Actually the strike is helping in one area...it allows GM to purge some of the excess inventory of their products.

[630land]

GM based their "comback" too much on these hogs, now biting them in the ass. 10 years ago the Tahoe and Expedition weere called "the cars of the future, what everyone will drive eventually" As if all drivers would get them to all be the same driving position!

 

Those that thought gas would be forever cheap was living in a fairy tale.

Edited May 4, 2008 by 630land

[controller]

GM has a few problems on their hands. For one gas prices, but they arent the only ones. Two is ford and dodge both have revised trucks coming out later this year and GM's already look dated. Three, they are ugly as all get out and lastly it doesnt have a blue oval on it. Besides someone being a diehard GM fan i dont think they are going to have much appeal at all to the public once our trucks are out. I think GM is sweatin bullets right now. Gas prices are high, ford has a new truck coming out and they are sittin on a new dated ugly design.

 

Don't forget a new Ranger and F-100 in the pipeline!

[jpd80]

Ford has made real changes to its North American business, GM has not.

 

Guess which one is being found out big time?

[catan70]

Lets assume the turnaround at ford is a success and GM's is a failure and eventually they file bankrupcy. How would that affect ford? I have been told that ford and gm both need eachother to survive, is that true?

[salsakingcpa]

its true, i.e. two fishes in one pond if one dies, the other one dies too. ford might fold because if gm files bank then the credit market will be nonexistent for automobile loans, and without credit, there are no credit sales for ford motor/ford motor credit. As many know, ford and gm sell car payments, and toyota/volvo sell automobiles as saying goes.

 

 

 

Lets assume the turnaround at ford is a success and GM's is a failure and eventually they file bankrupcy. How would that affect ford? I have been told that ford and gm both need eachother to survive, is that true?

Edited May 4, 2008 by salsakingcpa

[salsakingcpa]

Ford has made real changes to its North American business, GM has not. Guess which one is being found out big time?

 

yea, ford made big changes, mostly in buyouts and layoffs. Mr. mulally did ask to have a good focus, and that was great. He is doing a great deed by selling other assets such as jaguar, aston, rover, and in the future volvo and mercury. Also he created global czars in purchasing, manufacturing and marketing, and reduced one or two layers of executives. I think the most important areas that Mr. mulally is having an effect is simplifying purchasing/engineering by using global assets from australia, europe, japan, and acquiring other HR assets such as Mr. Farley. Also mortgaging everything and getting new debt helped alot along with the development of sync, and he also guided ford to go after turbocharged gas engines (renamed as ecoboost by Mr. Farley).

 

I think the key in the future will be flex as some people have said that it will have a mustang effect meaning it will have a cult following, and it is really possible because flex can become pick ups as well. Ford really lucked out if it goes this way.

 

Ford transit will make a big splash in the future, and it is great that mr. mulally have encouraged NA engineers to bring it state side along with the New Fiesta because NA engineers are CLUELESS.

Edited May 4, 2008 by salsakingcpa

[156n3rd]

I have always disliked many of the products built by GM. But the layoffs that result from shutting down assembly lines is totally against what this country needs the most. Now that GM knows they must get smaller vehicles on the road, will they import more of them brom abroad? The Aveo appears to be a tiny little el-cheapo, making the small Korean cars look very good. The Colorado is another mistake because it is a very uncomfortable design and it's got those same high price tags as the Dodge Dakotah.

I was not aware that Ford is finally working to update/replace the Ranger. Good. The Fiesta is another good thing to have here as many other units built outside of the U.S.. Many of the brands and cars sold in Europe come with lots more standard equipment, as well as choice than here. I've been in them and they are awesome. I still say that we should all get to know more about European offerings because they would do well here now under these conditions.

[NickF1011]

its true, i.e. two fishes in one pond if one dies, the other one dies too. ford might fold because if gm files bank then the credit market will be nonexistent for automobile loans, and without credit, there are no credit sales for ford motor/ford motor credit. As many know, ford and gm sell car payments, and toyota/volvo sell automobiles as saying goes.

 

What the hell are you talking about? How would a GM bankrupcty affect FORD'S abililty to get credit? Heck, the rolling credit facility Ford uses for Ford Credit is actually rated pretty high. And well, Ford's revenue is FAR more based on its automobile sales than its sales from Ford Motor Credit. Seriously. Put down the crack pipe and slowly step away from the keyboard.

[V8-X]

What the hell are you talking about? How would a GM bankrupcty affect FORD'S abililty to get credit? Heck, the rolling credit facility Ford uses for Ford Credit is actually rated pretty high. And well, Ford's revenue is FAR more based on its automobile sales than its sales from Ford Motor Credit. Seriously. Put down the crack pipe and slowly step away from the keyboard.

 

If GM declares bankruptcy, which would potentially wipe out all or the majority of their debt to creditors, then they would make much more off the sale of each vehicle than Ford would. Basically the GM debt to income ratio would be a lot better than that of Fords/Dodges. If this occured and both GM and Ford applied for credit the lender would look at two items. For GM, it's the fact they claimed bankruptcy which shows they've had problems paying creditors in the past. But in GM's favor, they no longer have the huge debt to pay off, basically debt to income ratio. Now Ford would still have all their debt and would profit significantly less off the sale of each vehicle due to this debt. Sure they haven't filed bankruptcy, but the lender would look at their debt to income ratio and see they have a higher chance of defaulting on the loan due to the debt.

 

For Dodge & Ford to compete in the market and make the profits GM would make after filing bankruptcy and eliminating all their debt, they too would have to follow suit and file bankruptcy. Then each make would be on equal footing and none would have an extremely negative debt to income ratio.

 

It's like you and I when buying a house. If you make more and have less debt than I, the lender is more likely to lean your way knowing you are more likely to make your payments and not default on the loan. While since I make less money and have a larger debt/income ratio, they see me as a potential foreclosure case. Sure credit rating impacts both you and I, but doesn't impact these huge corporations nearly as much.

 

Hope that was understandable.

[NickF1011]

If GM declares bankruptcy, which would potentially wipe out all or the majority of their debt to creditors, then they would make much more off the sale of each vehicle than Ford would. Basically the GM debt to income ratio would be a lot better than that of Fords/Dodges. If this occured and both GM and Ford applied for credit the lender would look at two items. For GM, it's the fact they claimed bankruptcy which shows they've had problems paying creditors in the past. But in GM's favor, they no longer have the huge debt to pay off, basically debt to income ratio. Now Ford would still have all their debt and would profit significantly less off the sale of each vehicle due to this debt. Sure they haven't filed bankruptcy, but the lender would look at their debt to income ratio and see they have a higher chance of defaulting on the loan due to the debt.

 

For Dodge & Ford to compete in the market and make the profits GM would make after filing bankruptcy and eliminating all their debt, they too would have to follow suit and file bankruptcy. Then each make would be on equal footing and none would have an extremely negative debt to income ratio.

 

It's like you and I when buying a house. If you make more and have less debt than I, the lender is more likely to lean your way knowing you are more likely to make your payments and not default on the loan. While since I make less money and have a larger debt/income ratio, they see me as a potential foreclosure case. Sure credit rating impacts both you and I, but doesn't impact these huge corporations nearly as much.

 

Hope that was understandable.

 

I understand the concept of debt-to-income just fine, but I don't see where that would affect Ford in any way. The only place Ford needs continuous borrowing power is for Ford Motor Credit, which is never problem as they just use the vehicles being sold as collateral for the borrowing. The only place I can see it being an issue is if, for some reason, Ford finds a way to burn through its $30B in cash, burns through its $10B revolving credit facility (which it hasn't tapped yet), and still sees a need to borrow significantly more money. If that becomes the case, then Ford would be in trouble regardless of what happens to GM.

Edited May 5, 2008 by NickF1011

[goinbroke2]

Lets assume the turnaround at ford is a success and GM's is a failure and eventually they file bankrupcy. How would that affect ford? I have been told that ford and gm both need eachother to survive, is that true?

 

Yes it is very true. and to add to that, it would hurt Ford if toyota went under too.

 

Why?

 

Because 80% of tow trucks are Fords and without the broken crap on the side of the road, the wrecker operators wouldn't be busy. That means the wreckers would last longer and they wouldn't be buying new SD from Ford. Less sales would certainly effect Ford.

 

So there you have it, Ford "needs" GM and toyota!