Jeffyboy

The Ford Debt Disaster Continues

That is a good analysis of a snapshot. Your comments on debt is a common theme right now.

I disagree on the level that the debt is completely poor. If they sold this debt off they would get much less then the loan loss value of the debt out there. They need to ride it out. That is the best thing for the current stockholders.

But what is clear which is what I think you are speaking to. Is american auto industry need to work on understanding making and selling cars at a profit. All of this financing mumbo-jumbo has deluded their ablility to perform well against their competition. The American auto industry has relied on financing to sell the car and less on the car.

Seeing what I am seeing from Ford, I think they get that. It would appear they are trying to reduce models down to what sells and build off of that. GM seems to be moving a little slower in that direction but toward that direction. Chrysler is not transparent enough but seems to be looking to building production effiencies to make their cars profitable.

Ten years ago the american auto industy had good years but they again lost their way. Twenty years ago the American auto industry was beaten up like it is today and they came back.

The problem is the american auto industry need consistant stewardship. They make good cars and have good ideas. But they continue to take their eyes off their products and its values and depend on finding profits outside of their core products.