Can Ford Survive? Stockholders Need to Know

The Stock Masters submit: The Ford Motor Company (F) is an institution as American as apple pie. They marked their 100th anniversary in 2003, in 1903 Henry Ford and 11 investors founded the company with $28,000 in capital and sold its first car in Detroit.

In 1903, $28,000 is equivalent to roughly $600,000 today, so keep in mind they invested a great deal at the time and took a chance on something they believed in. It was one of the first American dreams come true, the creation of the 'assembly line' implemented in 1913, the Model T, Thunderbird, Lincoln Continental, Mustang, and let's not forget the Ford Pinto, not their best moment but one to reflect on none the less.

In 1978 the Department of Transportation announced that the Pinto fuel system had a "safety related defect" and demanded a recall. Turns out, if you rear end a Pinto at 30 MPH, well..a picture is worth a thousand words:

Ford agreed to the recall and on June 9, 1978 the company recalled 1.5 million Pintos (I cringe thinking about the actual number of fatalities and burn victims it took to make that happen). I had a green "Poison" Pinto matchbox car as a kid, no one ever burned in it, but I did set it on fire when I was 10.

In 2006 the Ford Motor Company is doing everything in its power to not get burned, it's been a tough battle, and the hard part has yet to come.

Ford is responsible for the following brands:

In recent years Toyota (TM) and Honda (HMC) have set the standard and are now the major players. When you are stuck in traffic or walking through a shopping mall parking lot, I guarantee you see more foreign cars then American.

In April 06, Ford had its worst quarterly results in four years; they posted a loss of $1.2 Billion for Q1 06. Two weeks ago they announced they were cutting Q4 06 production by 21 percent and temporarily shutting down 10 assembly plants due to declining pickup and SUV sales. In January, Ford announced they will be letting go 25,000 to 30,000 employees and closing the doors to 14 plants by 2012. You can't help but think, to little too late Ford.Why would American's keep buying bigger cars? I couldn't believe the latest fad with the Cadillac Escalade or any of the Hummers (H2 or H3); nothing but a status symbol. But the big car fad is over.

American's got realistic about how much they were willing to pay at the pump and how if affects their pocket books. Why Ford didn't invest early in hybrid engines and efficient cars like Toyota and Honda have is beyond me. The Smart Car can be seen in every city in Europe, it's now trying to gain market share in America. Zap (ZP), maker of the Smart Car has had a terrible time over the past three years trying to get approval from our government to sell their cars in America. Zap also has struggled with converting Smart Cars to American standards in a partnership with DaimlerChrysler that has ended in the court room. In November, Zap filed a lawsuit alleging that DaimlerChrysler has attempted to keep them from converting Smart cars for the U.S. market.

Ford is losing ground to the Toyota Prius, Honda Civic Hybrid, Scion wagon, Mitsubishi Lancer, Hyundai Sonata, and the list goes on and on. I believe Ford will survive, but it's more hope than an actual belief, can you imagine the day when Ford closes its doors?

It would be a very sad day for America, and I think the powers that be will not let that happen. Consider Ford shares have been trading in the high $7 to $8.30 range for the past six months, their P/E is -12.34 and they have a market cap of $15.37 billion. The fundamentals are a nightmare and with all the bad press, this is either a time to buy the stock, or stay away for good. Maybe Ford should try and bring back the Pinto, imagine what the new Ford 2007 Pinto could do to the company. If they fixed the exploding gas tank problem, they might just have a winner on their hand, spice it up and get Paris Hilton on the Ad:

F 1-yr chart:

Article written by Ben Stevens.

Comments

[LouSav:]

Ford will survive and prosper! There biggest challenge is to get the younger population into the showrooms. I have a disproportionate amount of my net worth invested in Ford. It's been a tough go loosing over 85% of my investment on paper. But lets not forget that Ford's quality is second to none and the Fiesta will be here very soon. The Fiesta is the rage in Europe offering amazing economy with driving enjoyment to boot.

But Ford is introducing a whole range of new vehicles from the unitized Explorer with the eco-boost engine to the beautiful new Taurus. Don't give up on Ford . After all we are still Americans and we can do anything we put our mind to.

Lou

2008 Nov 11 08:52 PM

[Big Bob:]

I have been buying Ford products forever and I find that they are good cars and Consumer Reports says that they are the best in quality compared to other American autos and are even being compared to Toyota. That tells me that they can survive. But they must lure people into their showrooms with more economical cars and be wise and give the same warranty for 100,000 miles as the foreign competition does. That will help them survive. Why don't they wake up and give that warranty?

2008 Nov 13 08:39 AM

[LouSav:]

Agreed. They should increase the warranty to 100,000 miles. But they should earmark more to their advertising budget to get the word out about their quality.

They might also consider offering a stock for car swap. Why not offer shareholders the opportunity to tender shares at a premium to current market price in vehicles. It might not help cash flow but it would increase earnings per share by removing those shares tendered form those outstanding and would deplete stale inventory.

2008 Nov 13 04:56 PM

[SEVEN:]

Ford cars no offense Are rubish, crap compare to european or japanese.
I know its sad cause Ford is more than a car, but is also the management fault that they didnt care to keep up with other manufactures.
I like the Image of Mustang...but I ll never buy one, cant even compare to a Merc or BMW.
If Ford dies and Other Manufacturers survive...means It was his problem.

2008 Nov 21 02:51 PM

[SEVEN:]

Ford is well know In Europe for the worst quality lol.
Here only pour people buy Ford :)). So that make Ford something to be
ashame or be proud..that a question for u americans.
U are intoxicated with " we are americans" " we can do whatever we want"
to bad I got some bad news 4 u..take a good look around and tell me if ur happy now with ur Americaca:))

2008 Nov 21 02:57 PM

[SEVEN:]

www.youtube.com/watch?...
Buy German cars..Sell Wiskey and Rock and Roll, and forget about ur cars
and U ll be k.
come on dont u like the Mercedes..??:))

2008 Nov 21 03:24 PM

[LouSav:]

Steven

Take a deep breath. It is the USA that has brought almost every advancement to the world to life. In pharma, industrialization, agriculture, space exploration, etc. even this medium you are using to bash us.

It’s our system that permits the talents of the individual to blossom and produce benefits that help all of mankind.

And GUESS WHAT! we are Americans, in my opinion the most resourceful people on the face of the planet.

And BTW just take a look! Ford is rated on par or better than Honda, Toyota, and leaves the Germans in the Dust.

Lou



On Nov 21 03:24 PM Seven wrote:

> www.youtube.com/watch?...
> Buy German cars..Sell Wiskey and Rock and Roll, and forget about
> ur cars
> and U ll be k.
> come on dont u like the Mercedes..??:))
>

2008 Nov 21 09:56 PM

[SEVEN:]

America also Brought Stupid wars that it create to sell ur stupid guns,
stupid people Fast food generation, biggest coruption, biggest polution,
Bigest polution comes from ur non eco stupid cars that are dieing now.
U know a Volkswagen Scirroco has 1.4 liter gas engine, 160 Hp and 7 sec 60 miles??:)) and consumes 6 liters.....btw that my friend it is GERMAN.
AND IF U COMPARE FORD TO MERCEDES BENZ U MUST CHECK A DOCTOR!:))( or u never had a mercedes:)))

Why dont u admitt coase all is happent lately to America was only his fault, That Stupid war u didn success to robe more countrys....and
now UR CORUPTED sistem can HOLD even ur jobs.

AND BTW U WERE A GREAT COUNTRY BUTT NOT ANY MORE.
ALL EMPIRES COMES TO AN END AND THIS IS URS IN MY OPINION.

2008 Nov 22 09:02 AM

[SEVEN:]

And one more thing, u had innocents killed by terorists..thats a terible thing
nothing to discus here....But terorist prouved to had nothing to do with some arabic states that u invade.
I ask u foul what do u say about INOCCENTS KILLED BY USA ARMY SOLDIERS!!!!!!!!!
What do u say about that..are u proud now to be American??
I woudnt...
And u know why u cant sell ur stuff anymore..couse people do bussiness
with people not criminals.

2008 Nov 22 09:12 AM

[SEVEN:]

pls wach the last part..I am not even smiling now.
www.youtube.com/watch?...

2008 Nov 22 09:36 AM

[SEVEN:]

European Cars:
-Lamborghini
-Ferrari
-Maserati
-Bugatti Veyron
-Mercedes-Benz
-BMW
-Volksvagen
-Volvo
-Alfa Romeo..etc etc etc...
Tell me the americans:)))))

2008 Nov 22 03:13 PM

[SEVEN:]

want more??:))
-Aston Martin
-Jaguar
-Audi
-Porche
..............what are urs??:)))

2008 Nov 22 03:15 PM

[SEVEN:]

Good american cars are just for peasants:)))

2008 Nov 22 03:16 PM

[SEVEN:]

Hey ford loosers here is a fresh one:))
www.youtube.com/watch?...

2008 Nov 22 04:10 PM

[SEVEN:]

MADE IN us...HELL NO!

MADE IN EUROPE!!! ^^
www.youtube.com/watch?...

2008 Nov 22 04:30 PM

[SEVEN:]

THIS IS REALLY GOOD;)))
www.youtube.com/watch?...

2008 Nov 22 04:39 PM

[SEVEN:]

ONEE MORE ONE MORE:)))
www.youtube.com/watch?...

2008 Nov 22 04:42 PM

[SEVEN:]

www.youtube.com/watch?...

2008 Nov 22 04:54 PM

[SEVEN:]

HELLOOO I AM ALONE ON THIS BLOG
DONT BY FORD 4 TWO REASON: IS AMERICAN AND IS CRAPY:))

2008 Nov 23 04:32 PM

[USA#1:]

All you non-Americans who have nothing good to say about America are really nothing but dogs biting the hand that feeds you! If wasn't for America, you would probably be under German, Japanese or Russian rule. Yes, America sometimes sticks its nose where it doesn't belong, but this is more a result of corrupt politicians and greedy corporations than true patriotic Americans like the ones who probably died for your freedom too! No country in history to my knowledge has been as generous as America. We provide more foreign aid than any other country in the world. In addition, when we won World War II we did not take over the countries that we conquered - when has that ever happened before? Further, I believe that a true gauge of the goodness of America or any country for that matter, is the fact that there are more people trying to enter than to leave. Can you say the same about your country?

2008 Nov 23 10:09 PM

[SEVEN:]

I had nothing about ur stupid kids u sent to war and got killed ,
but ur corupted sistem and ur greed..will be ur executioner if u dont
do something about it.
If u have power to change why u dont change america in something
good cause now ur Coruption and Leaders greed make u look from outside like the worst comunist state.
So I reallY was serious when I said I AM HAPPY NOT TO LIVE IN AMERICA
and ARE MANY BETTER PLACES TO LIVE.

2008 Nov 24 03:17 AM

[SEVEN:]

images.businessweek.co...

I want to move To Viena and btw NO USA CITYS ARE EVEN IN TOP 20 ::)))))

2008 Nov 24 03:23 AM

[SEVEN:]

And one more thing all the answer I got are so formal..
MAYBE ARE FROM FORD MANAGERS:)) MAYBE ALL THIS BLOG IS MADE BY THEM TO PUT SOME LIGHT ON THE CRAPY COMPANY AND TO FOUL THE INVESTORS :))))

2008 Nov 24 03:32 AM

[SEVEN:]

Seven is right..I am thincking to leave USA.

2008 Nov 24 02:26 PM

[SEVEN:]

PFFFF

2008 Nov 24 02:27 PM

[LouSav:]

Hey Ranter,
Did the USA ever exterminate Millions and Millions of its own people? Well Stalin did in Russa . You can have this forum in a free country like The United States of America, But not in a Marxist state.

It can't be denied, under Totalitarian regimes tens of Millions of people have been put to death for the good of the party. Wake up and smell the coffee! We are not debating if the USA is perfect. Of coarse its not but its light years ahead of anything else on the planet.

Tell me why we have people from all over the world immigrating to the USA. No I’ll tell you! It’s the BEST PLACE ON EARTH PERIOD> Don’t be jealous, FYI the people of the United States of America donate more to world causes that anyone on the planet. Even the evil President George Bush put forward 15 Billion for AIDS treatment in Africa.

Our current morass will pass and we will continue to lead the world. Don't miss the train or you will be left behind!
On Nov 22 09:02 AM RUSSIA#ICHIBAN wrote:

> America also Brought Stupid wars that it create to sell ur stupid
> guns,
> stupid people Fast food generation, biggest coruption, biggest polution,
>
> Bigest polution comes from ur non eco stupid cars that are dieing
> now.
> U know a Volkswagen Scirroco has 1.4 liter gas engine, 160 Hp and
> 7 sec 60 miles??:)) and consumes 6 liters.....btw that my friend
> it is GERMAN.
> AND IF U COMPARE FORD TO MERCEDES BENZ U MUST CHECK A DOCTOR!:))(
> or u never had a mercedes:)))
>
> Why dont u admitt coase all is happent lately to America was only
> his fault, That Stupid war u didn success to robe more countrys....and
>
> now UR CORUPTED sistem can HOLD even ur jobs.
>
> AND BTW U WERE A GREAT COUNTRY BUTT NOT ANY MORE.
> ALL EMPIRES COMES TO AN END AND THIS IS URS IN MY OPINION.
>

2008 Nov 24 10:50 PM

[SEVEN:]

LOL Russia is was just a joke to make u angry..I am european btw
I am not against America..I am oposing the things it dones now.
U cant have a corupted economy and pumped money into it coase this is not democracy this is Socialism..And if America today is a socialist state
is no longer America and that is sad.
The capitalism comes with risck and freedom, but if u dont want to take the
risck u will loose ur freedom .

2008 Nov 25 01:05 PM

[SEVEN:]

...and about extermination loosing savings,homes and jobs..this my friend is
extermination too..other tipe but same result.
How many americans comit suicide and will comit suicide due to todays condisions..?and if u thinck I am jalous on u u must be out of ur mind!!!:)))
I THANCK GOD I AM NOT AMERICAN..PERIOD!!!

2008 Nov 25 01:11 PM

[SEVEN:]

Ur clowny sistem will colapse until next summer and then will talk and see who was who...

2008 Nov 25 01:14 PM

[SEVEN:]

If u thinck ur light years away from us the Rest of the world mortals
MAKE ALL OF US A FAVOR AND GO COLONIZE SOME OTHER PLANET AND LET US LIVE WITHOUT U AMERICA. ^^

2008 Nov 25 01:29 PM

[SEVEN:]

AND THE BII\GEST LOOSERS WILL BE CHINA AND ARABIC STATES THAT HOLD TONS OF UR TOILET PAPER U CALLED... MONEY ..DOLARS:)))

2008 Nov 25 01:33 PM

[SEVEN:]

YEAH AND RUSIA TOO :)))) FUCKING COMUNISTS:)))

2008 Nov 25 01:34 PM

[SEVEN:]

USA DOLAR = TOILET PAPER
USA = BIGGEST TOILET
FORD = CRAP CAR
AMERICANS =CRAPY PEOPLE
DAM>>>IS ALL AMERICA A BIG CRAP:)))

2008 Nov 25 03:05 PM

[SEVEN:]

To LOU " Het RANTER..:))"
More recently, the historian J. C. Davis has suggested that the Ranters did not exist at all. According to Davis, the Ranters were a myth created by conservatives in order to endorse traditional values by comparison with an unimaginably radical other. Though other historians have expressed doubts, Davis has been at least partially persuasive; Richard L. Greaves, in a review of Davis's book, suggests that though a very radical fringe existed, it was probably never as organized as conservatives of the time suggested.

2008 Nov 26 08:29 AM

[consumerons...:]

Hope you feel a lot smarter than you sound.


On Nov 25 03:05 PM SEVEN wrote:

> USA DOLAR = TOILET PAPER
> USA = BIGGEST TOILET
> FORD = CRAP CAR
> AMERICANS =CRAPY PEOPLE
> DAM>>>IS ALL AMERICA A BIG CRAP:)))

2008 Dec 09 02:09 AM

[consumerons...:]

Osama? Osama?


On Nov 24 03:17 AM SEVEN wrote:

> I had nothing about ur stupid kids u sent to war and got killed ,
>
> but ur corupted sistem and ur greed..will be ur executioner if u
> dont
> do something about it.
> If u have power to change why u dont change america in something
>
> good cause now ur Coruption and Leaders greed make u look from outside
> like the worst comunist state.
> So I reallY was serious when I said I AM HAPPY NOT TO LIVE IN AMERICA
>
> and ARE MANY BETTER PLACES TO LIVE.

2008 Dec 09 02:24 AM

[consumerons...:]

Osama?


On Nov 24 03:28 AM SEVEN wrote:

> I MIGHT BE A NON AMERICAN BUT I ADMIT I HATE AMERICA.
> I MIGHT BE A DOG BUT I NEVER FEED FROM AMERICA AND NEVER WILL. <br/>I
> AM A RICH BIG DOG WHO GOT ANYTHING HE WANTS:)))
> AND WAS A WORLD IF U GOT AN ENEMY
> " DONT DO ANYTHING TO HIM JUST WAIT ON SIDE OF THE RIVER AND HIS
> CORPSE WILL COME FLOTING...""
> GOT NOW I AM JUST WAITING AND ENJOYIND UR STATE OF MISSERY.

2008 Dec 09 02:24 AM

[consumerons...:]

Osama?


On Nov 24 03:28 AM SEVEN wrote:

> I MIGHT BE A NON AMERICAN BUT I ADMIT I HATE AMERICA.
> I MIGHT BE A DOG BUT I NEVER FEED FROM AMERICA AND NEVER WILL. <br/>I
> AM A RICH BIG DOG WHO GOT ANYTHING HE WANTS:)))
> AND WAS A WORLD IF U GOT AN ENEMY
> " DONT DO ANYTHING TO HIM JUST WAIT ON SIDE OF THE RIVER AND HIS
> CORPSE WILL COME FLOTING...""
> GOT NOW I AM JUST WAITING AND ENJOYIND UR STATE OF MISSERY.

2008 Dec 09 02:25 AM

[anchoviesrule:]

Seven you are obviously very proud of German engineering and rightly so but when you accuse the US of starting stupid wars you are right But are you forgetting that the two Biggest and Deadliest Wars in History were started by you AHOLES we just had to come over there in our FORD TRUCKS and KICK YOUR PATHETIC ASSES TWICE DEITER and I am willing to bet it will happen again.

Feb 06 08:47 PM