IXLR8

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    • Ford: Ripe for the (Bottom) Picking? [view article]

      Say, Horacio, the union contract was ratified almost a year ago.

      Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


      Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


      Aug 29 02:47 PM
    • Ford: Ripe for the (Bottom) Picking? [view article]

      Say, Horacio, the union contract was ratified almost a year ago.

      Further, Ford's truck sales are about 40% of its total sales, not 60%. It's about 40% cars, 40% trucks and SUVs and about 20% crossovers.


      Also, Ford has reduced costs more than $5 billion in the past few years and will reduce costs a further $5 billion by the end of 2010. Additionally, the Company has off-loaded its union retiree healthcare obligation to the Union at about 55 cents on the dollar. What this means, in a capital intensive industry such as automotive, is that the profit/loss breakeven point is reduced significantly. When production rises in the near future with an entirely new and expanded lineup of profit making cars and trucks--as the Company and the overall economy recover--stand back, as the profits are going to be gushing out of Ford.


      Aug 29 02:47 PM
    • Automakers: Seeking Billions from Uncle Sam [view article]


      Very strange!

      Same article as yesterday, but with a different author's by-line.


      Aug 23 07:15 AM
    • Sick and Tired of Financials, Carmakers Blaming Everyone but Themselves [view article]


      I suppose that the author of this drivel has insurance policies to protect him financially when he does something bloody incompetent like driving into a tree or falling off a ladder while cleaning leaves from his gutters.

      Can any fool get a job here writing columns?
      Aug 22 06:59 PM
    • Automakers: Seeking Billions from Uncle Sam [view article]


      Quite a misleading headline. The automakers are asking for loan guarantees, not cash.

      Remember Chrysler in the old Lee Iaccocca days--they got a loan guarantee. They paid off the loan early, and the government got the interest.

      This is likely far less risky than the government's unfunded pension, unfunded medicare and unfunded social security obligations. It's better for America than bailing out Freddie and Fannie ever was.

      Aug 22 06:55 PM
    • Leasing and the Big Three Automakers [view article]
      Another automotive column that is poorly researched and obviously biased.

      Big Three, Big Three, Big Three... Are they are the only ones having trouble??

      Why not report that BMW leases 60% of its total US sales and is trying to cut them back?

      Audi is praying that its new A4 is not affected by lease problems--why isn't that in your article?

      What about Lexus and Mercedes? Aren't their sales mostly leases and aren't their sales down sharply?

      Looking forward to the other half of your column....


      Aug 01 10:44 AM
    • Impact of GM Destroying the EV1 [view article]

      Mr. Fitz, how many EV-1s did you lease? Why is it news that GM and Ford are presently adjusting their model mix to customer demand?

      Toyota is reducing the production of its Tundra, which has proven to be a collosal waste of money for them. One year late in getting to market because they couldn't build the plant properly. They had to fire the Japanese plant manager. Then, the Tundra comes out and is hit with three recalls in the first year of production, including blown engines. To make their modest sales goal, they had to offer $6,000 rebates to get people to buy it.

      Toyota this year launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales. Sales of their Siena minivan are down 50%.

      I'm looking forward to reading your insightful analysis on Toyota's product failures.

      Jul 31 07:04 PM
    • Ford Shareholders Face High Potential for Pain [view article]
      Everyone knows that a cartel of labor (unions) only works in a monopoly. (See teacher's unions and AFSCME, for good examples) As long as the Big Three were the monopoly, and the union got its "pattern" contract, the individual car company who stood up to the union was left with a massive shutdown while its competitors kept working. It's management's fault, but it's also Wall Street and the investor community who wanted the plants operating.

      Now, almost everyone in the automotive world is selling and/or producing in the US, and labor's cartel has lost its punch. Through the "jobs bank", the union was paid if there was work or not, so the companies kept producing and selling with rebates. The cost of union labor at the Big Three was about $75/hr, largely due to the pensions and retiree healthcare costs not borne by the new US producers.

      Now, the union is on its knees. It has lost more than 500,000 jobs in the past decade that they are not getting back.

      The "jobs bank", in which some workers sat without work but with pay for as much as 10 years, is gone.

      Workers who are without work and refuse to relocate geographically to available work in another plant are fired.

      They will be assuming responsibility for their own healthcare, through a fund established by each company at around 60 cents on the dollar. (At GM, the number 1 prescription drug was Viagra. You can bet the union won't continue that on their own dime.)

      The companies can now hire new employees--up to 20% of its workforce--at $14/hr with no pension and no retiree healthcare cost.

      That's why the companies are offering buyouts to get the high-paid to leave. And there is no shortage of applicants at $14/hr.

      Ford has already cut $5 billion in annual costs, and by 2012--just a few years--will cut another $5 billion in cost.

      Ford will make it, and those that get in and ride it up are going to have a great ride.       Jul 31 06:51 PM
    • Impact of GM Destroying the EV1 [view article]
      I would like to add that speculation is being reported in the automotive press that GM will eventually cease production in the US and become an importer of their vehicles produced in China, South America and elsewhere.

      So, maybe, they are taking your advice and are starting to think ahead--no more UAW, no more pensions, no more lifetime healthcare, etc. They are probably counting on guys like you to fund these things through your increased taxes.

      Jul 31 12:06 PM
    • Impact of GM Destroying the EV1 [view article]
      Well, Mr. Fitz, I think that you are on to something with your article. What a swell economy we would have in the US if GM had kept those 800 cars on the road and killed off everything else.

      With only 800 electric cars on the road (and going only 45 miles or so), the roads would never be crowded and would last forever, pollution would go to zero, CARB could furlough all their employees for a huge tax saving, etc., etc., etc.

      It is really too bad that GM didn't think of that way back when.

      And, since GM would have offered only 800 of these cars, why, Toyota--with their mega-brain management, Honda and Nissan--mighty Japanese companies with really smart management--would have quickly joined suit and each produced their version of 800 electric cars. What a wonderful world we could have had!

      You do fail to mention that even the Toyota Prius (I know, I know--it's only a hybrid) wasn't selling in volume until the US government took your tax money and gave a rebate to someone who bought one. How exaclty does that improve our balance of payments?

      Jul 31 11:57 AM
    • Challenge for Ford and GM: To Stay in Business [view article]
      Well Michael Shedlock has all the answers doesn't he. Ford and GM should have seen this coming, right?

      Well, Mr. Shedlock, you should also report that in the labor negotiations last fall (that's right, only about eight months ago) Ford proposed to the UAW that it would close the plant that makes the 35MPG Focus because sales were so dismal. The two sides agreed to new terms to keep the plant open. Now, of course, it is running maximum overtime on two shifts and will soon move to three shifts.

      Truck plants are the inverse with $4 gas.

      Mr. Shedlock similarly does not report that the vaunted Toyota is also losing money in the US as its Tundra pickup, Sequoia SUV and Sienna Minivan sales have fallen apart. Indeed, it's TX plant is running at about 70% of capacity and its IN plant is at 45% of capacity.

      Weak article, poorly researched.

      Jul 03 12:57 PM
    • GM Calls the Top for Oil [view article]
      Why is it news that GM and Ford are adjusting their model mix to customer demand? Toyota is reducing the production of its Tundra, which has proven to be a collosal waste of money for them. One year late in getting to market because they couldn't build the plant properly. The had to fire the Japanese plant manager. Then, the Tundra comes out and is hit with three recalls in the first year of production, including blown engines. To make their modest sales goal, they had to offer $6,000 rebates to get people to buy it.

      Toyota just launched their new LARGER 2008 Sequoia which is based on the Tundra. It also has been a dud in sales.

      I'm looking forward to reading your insightful analysis on Toyota's product failures.       Jun 03 06:17 PM
    • Why Auto Stocks Are an Easy Short [view article]
      This author of this article should be "recalled" and repaired before he is foisted on the public again. Prejudice is not fact, and such a silly, cursory review of the state of the auto industry is apparently the best this kid can do.

      I always get a kick out of auto industry analysts who have ALL the answers abouit how to run a car company but likely cant even change their own oil or spark plugs.       Apr 10 12:03 AM
    • Jim Cramer's Mad Money Lightning Round, 3/18/08: Apple Ripe for Picking [view article]
      It's cute that Cramer is getting dotty in his old age. Some time back, he said that Ford had great management with Alan Mullaly. Then, the stock declined about a buck. Cramer then said, when the stock hit $7, that we should jump in--at $7 it was a real buy. Now, it is below $6, and he is saying stay away from the common. Jim Cramer: I used to be indecisive, but now I'm not so sure. Mar 19 11:41 AM
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