The News Ford Doesn't Want To Talk About
As compelling as Ford’s executive paycut for Easter Monday holiday “ compromise” is, there are still plenty of stormclouds brewing around Dearborn. For example, Ford’s supplier spin-off Visteon is tanking, telling Automotive News [sub] it “cannot assure that it will remain in compliance with the terms of its outstanding debt instruments.” The firm’s $328m fourth-quarter loss is being blamed on a billion dollar revenue drop and “asset-impairment charges” of $200m. This coming from a firm that has never turned an annual profit. Amid growing rumors of bankruptcy filings (and 13 cent stock price), Visteon’s only other choices are asset sales or government bailout. Meanwhile, inquiring minds (OK, MSNBC) are beginning to wonder when Ford will succumb to the siren song of the federal bailout.
Himanshu Patel of JP Morgan has begun to argue that “Ford is only nine to 12 months behind GM.” He says the Blue Oval will be down to $9b by year’s end, “roughly the minimum” Ford needs to survive. And all this just in time for a new USA Today/Gallup poll (via The Freep) saying only one in four Americans support bailing out the auto industry. Good times.
More by Edward Niedermeyer
Comments
Join the conversation
The original "Ford 6006" radio in my -03 Focus is a Visteon if i remember correctly. The in-dash changer would randomly jam when i hit a pothole or bump and not play cds at all, and then suddenly start playing again days and sometimes weeks later. It has been sitting in the garage for five years.
ford is making many good vehicles. the focus, f150 and taurus are really top in their class, and name me another offering that comes as close to the taurus other than the avalon. and the mks, although often bad-mouthed on this sight, is really a bargain. help me again by giving another vehicle that offers what the mks does and in its price. purchased one in november fully loaded for 41k. nothing came as close with the options. the new turbos coming, along with the new euro sizes will be helpful...but americans really still love the mid-size car above all others. the new mkz looked awesome at the chicago show...like a mini-mks. had everything at thousands less. purchased ford stock this week... couldn't help it! it was sooo low. it was like buying penny candy again.
the perfect move for mustang is it me, or wouldn't mustang really be great at half its size. and stop fooling with the pretend rear seat crap. make it the two seater it wants to be. if it were only the size of a solstice or s40 with the look of today's stang. it might be me, but i feel it didn't age along with me. and today a car needs to focus on being specific...and the mustang wants to be big, but small...new, but old...sporty but roadster...musle car but sports car and macho yet hip. come on ford...make it no larger than the focus or better, the size of the solstice.