Jonathan Christopher

Ford Realizes Higher Transaction Prices

Mulally is the name and and Productivity is the game. Alan Mulally was one of the two finalists to run Boeing, one of the best US companies ever. With him at the helm Ford has a real chance to regain it's position as #1 in US auto production - lost many years ago to GM.

Agreed that the financial numbers look really bad. But they are bad for every auto manufacturer. Auto production is a very high base-cost business. It cost hundreds of millions per day jsut to keep the doors open, so when sales drop, losses pile up at an unbelievable rate.

But the opposite is also true - when sales rise, profits skyrocket. When the economy recovers next year - and it will, Ford will go gangbusters.

I am long Ford (3500 shares) and long Ford bonds.

Why Ford Will Make It

Bottom Line of the Ford Financial Results: OWNERS EQUITY was + 5.628 Billion in 2007 and - 17,311 Billion at the end of 2008.

It looks to me like the "real" loss of value to the owners of $ 22.939 Billion. While it is very possible that the value of some of their assets may exceed the carrying value on the balance sheet, the conclusion that this company is on the ropes is inescapable, as presently reported.

Deals to get some of their liabilities reduced, such as with UAW pension and healthcare costs, are unavoidable. if the company is to survive.