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Ford: Federal Loan Package Doesn't Entice Kerkorian To Stick Around

Ford has restructured. Renegotiated contracts, streamlined factories and globalization of the product portfolio. It took an outsider, Mullally to do this. I think GM may need chapter 11, they are still the same old GM trying to push out the Volt and save the day-foolish. Chrysler is being groomed for a sale or merger. So in principal I agree do not pay out $50 billion to any of these guys, my point is that Ford may well make it on its own and further, I do not believe that a guaranteed loan to them would be lost.

Ford: Federal Loan Package Doesn't Entice Kerkorian To Stick Around

I completely disagree.
(1)There was no bailout of Chrysler. The government guaranteed a loan that Chrysler had arranged through a thrid party. The loan was paid back early with interest - there was $0 cost to the taxpayer
(2) Ford has about $38 billion they in cash and credit lines with $0 from the govt. in loans or guarantees. So we cannot make them file right now. If they do file though we -tax payers-are saddled with providing those who lost jobs in terms of pensions, lost taxes, and lost retirement benefits. Not only from Ford, but from dealers, suppliers and associated businesses. The factories will be torn down or rot...it is cheaper to build new and no one will invest in factories in MI without govt. incentives
(3) Compare the Chrysler in the early 1980's (we saved jobs, stabilized a company, retained shareholder value and saved associated businesses $0 to the taxpayer) to Kmart in the late 90's (shareholder value to 0, lost pensions, taxes etc.) and then VC guys pick up the pieces cheap and make a fortune

Ford: Ripe for the (Bottom) Picking?

The Chevy Volt is a Hybrid - it will only go 40 mi on a charge then a gas engine kicks in to extend the range. Call it an electirc car if you must, but technically it is not far from a Hybrid. GM states this will cost $48k to be profitable and are hoping to sell it a $30k with government incentives of $18k. I think most rational people would rather a $24k hybrid that has proven technology. Ford is waiting till 2014 because they felt monies were better spent on making there entire line more efficient. GM is like MS, they will bring out unproven technology just to be first. Ford is like Apple, they will bring it out when it is ready to appeal to a broader market.
Ford has $38b liquidity, at there current burn rate it will be a LOT longer than 2010 before they are illiquid - and they still have the option of selling Volvo and 50% of Mazda and FMC. Mullaly answers to Bill Ford- there is a lot of incentive from Bill Ford, the Ford family, the US Gov., Kirk Kerkorian etc.. not to let Ford go bankrupt .

Is Amazon’s Kindle Success Sustainable?

Ah, biggest factor is---- No one reads books anymore. Yes, of course --we read - but how many books in a year does the mainstream public read in a year 3-4 - ok magazines -- but where do we read them -take a Kindle to the beach, in the Lav at the doctors office. Amazon is the place for hard core readers and books buyers to go - these are the people buying these - there may be 2-3 million of these people --but my guess is sales will peak this year

The Ford Debt Disaster Continues

DEBT:140 billion in debt is well secured in relative terms - this is hardly Freddie or Fannie
QUALITY: Ford has three years of Fusion an Milans beating the Camry and Accord in Consumer reports and two years of the Edge ranking with the Pilot and Highlander. The f150 is better than the Tundra - the disgruntled workers have been sent home, the outdated factories shut down - the CEO is a manufacturing guy who is looking for 800/1000 --Lexus numbers.
PRODUCT: american cars have been wanting for years - but look at the cars Ford can design and build - the european Mondeo, Focus, Fiesta -these cars are better than the Japanese cars -much better in head to head comparisons. Ford will utilize its global prowess for the first time to get it right. Farley will make Mercury Ford's Scion, Lincoln Ford's Lexus and make Ford a Better Toyota. There is a well laid plan in place and they continue to execute on it. Volvo, 50% of Mazda and FMC can be sold when it makes sense -there is 38 billion in cash and credit, there is cash flow, there will be massive debt relief and overhead relief due to cuts - these guys are not going under.