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Ford CEO Alan Mulally predicts market recovery this year


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Let's see.....

 

Everything mortgaged..........check!

No credit...........................check!

All current credit lines used...check!

Volvo isn't worth much.........check!

Mazda isn't worth much........check!

Real estate market tanked.....check!

 

There are only three options I see.

 

Sell more stock to use for operating capitol. This will not go over really well on Wall St. Stock price will plummet. So, then you have two other options:

So why did the price go form $2.00 to nearly $6.00 recently?

If Ford is as bad off as you say, surely the market would be turning it back

I'll tell you why it went up:

A better than expected quarter result

$9.9 Billion of debt retired

$21.6 billion cash in hand

 

Selling more stock is exactly what they should do, it's the perfect way to retire debt.

Edited by jpd80
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Look, I'm not saying it IS going to happen. I am not saying it WILL happen. All I am saying is it COULD happen. And, if you can't see that possibility, please tell me what type of hallucinogenic drug you're on, because it sounds better than anything I have tried to date.

 

Then why parrot that is going to happen? Ford is in much better shape then the other two which is a huge plus. We know that it could happen, but we don't need be reminded by a negative Nancey that it might.

 

We might all die tomorrow, but why worry about it?

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I'm not saying it's going to happen. I'm saying that it could happen.

 

Put down the kool-aid and the pom-pom's, take a step back, and look at the situation. You'll see I'm right.

 

Yes, it could happen.

I could get struck by a loose Elephant in the middle of High St downtown tomorrow, as the circus is in town.

It could happen, but under current situations, it is not likely in the immediate future.

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I remember seeing an interview on Autoline Detroit TV with Jim Farley

He said that Ford looks at housing sector and pricing there helps them gauge the market.

“Man on Wire”

 

And this from Bloomberg:

Home Starts, Leading Index Probably Rose: U.S. Economy Preview

An easing in the housing slump, now in its fourth year, is an essential element of most forecasts for an economic recovery later this year. Rising stock prices and improving consumer confidence are among the components of the leading index that are stoking speculation the economy will begin to grow again in the next six months.

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They don't have to sell more vehicles, they just have to get the mix of product sales right for improvement.

If they increase private vehicle sales , those vehicles usually have more profit attached to them than fleet.

 

Sustainability has to do with making profit off every vehicle sold, where have we heard that before?

I disagree.

 

If Ford is not profitable at their current annual production volume (and they are not) then they either need to make significant fixed cost cuts (nothing "significant", like another plant closing, in the wind) or cut variable costs (cheapen the product; not a good idea) or increase the price of their product (some truth there) or increase the volume.

 

Yes, simply increasing the volume can produce more profit as fixed costs stay fixed and some variable cost typically come down do to discounting on higher parts volume.

Edited by theoldwizard
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Has anyone ever put an elephant on an elevator?

 

 

 

Sounds like the new GM corporate theme.

I go four, three, two, one

I go one , two, three, four

Then I push this little button

and I open the door

Then I close it right away

cause there's no room for more

I'm the elephant elevator operator.

Edited by jpd80
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But I thought that "elefantfahrstuhlführeraufzugsleiter" meant Opel in German.

 

You know, I wonder what the GM playbook looks like in German?

 

Where's PREMiERdrum?

 

1) Import opels

2) ?

3) Profit

 

We need that put into German :lol:

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