Ford to phase out most sedans

[Spanky61]

Ford is doing this more for investors then the public. The had a 9% profit increase last year and investors are urging them to make 12% this nest year. Ford is saying, they will save nearly $23 billion next year for investor interests. Ford's CEO Hackett is a previous; interim director of athletics at the University of Michigan from October 31, 2014 to March 11, 2016 and an office furniture industry (Steel case) CEO. He's got "nada," experience in the automotive world.

This is a mistake for FORD and will show up when Hackett is ousted or is asked to step down eventually. What they may save for investors this next year, will cost them dearly if they decide to retool for more automotive manufacturing again in the next 5 years. There're already "boo coo" layoffs happening now at Ford and the unions are a boil over it. It's amazing what investors will levy with a company such as FORD. When Ford restructured during the bailouts, they never took a dime from the public coffers, 500 Billion went to; Chrysler, GM and others. They even leveraged the actual Ford Logo. They came back in spades and were very successful at it also.

I will say it again this is a "BIG," mistake for Ford in general. Especially with a CEO who has no knowledge of the automotive world. IMHO

 

[YEH]

^ Would say that FoMoCo did benefit from what were basically zero interest loans and they stated that the Cash-for-Clunkers program basically saved their arse; they were burning thru their reserve of cash (acquired from leveraging themselves to the hilt) so fast that they only had about another year if the auto market hadn't started to recover (thanks to C4C).

Also, FoMoCo not having to go to the govt. to borrow $$ was fortuitous timing (due to the Ford family still having a considerable ownership stake) as it forced management to hit the credit markets earlier (in order to stave off any chance of bankruptcy which would adversely affect the Ford family).

By the time GM and Chrysler realized that they needed to borrow $$ - it was already too late (the credit markets had frozen).

But totally agree that it has been large investors pushing this move for Ford.