Blogging Stocks: Ford Worth $0
Published: March 16th, 2009
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TTAC commentator Jeevesw reminds us that The Blue Oval Boys also got the Blogging Stocks reality check, and it looks like another case of chew and screw. GM is number 7 on their list of Portfolio Killers. Ford comes in at number eight.
Despite its recent successes at negotiating new contracts and its refusal, so far, to accept government funds, when General Motors (NYSE: GM) goes into Chapter 11, Ford (NYSE: F) will have to do the same to remain competitive.
Given the ferocity of this downturn, if it didn’t accept government handouts, it would probably end up in some form of forced re-organization anyway.
Real shareholder value: zero
More by Robert Farago
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Ken Elias, An xtra 100,000 F150's for Ford is helpful, but it doesn't even put them back to where they were in 2006 sales. That's why it make more sense to put GM down. 500,000 Silverado/Sierra sales split between Ford and Dodge is HUGE. Not to mention the other model gains. Sorry, GM's carcass is just the right size for Ford and Chrysler to feast off of and get out of government aid. And the government will save billions not having to (maybe eternally) bailout GM.
Ford and Gm aren't worth nothing they are worth very negative nothing. The government will need to pump hundreds of billions in to keep them afloat.
.5MT: "Indeed, was it some weird MHD deal or did it use high pressure steam like gawd and Rickover (yes, yes and yes) want for their travelering kids?" I think mostly Ford was presuming the reactor technology they needed would be ready at the necessary price at some nebulous point in the future when they were bringing the car to market. Kinda like the Volt's battery pack.