User 325036

If Toyota Is Projecting a Loss, Imagine the Pain Detroit Is in For

Go ahead, jump in, the water is warm. The American Auto Industry is a very popular target these days. We are missing the true villans in my opinion. Hedge funds gone wild and the ignorance of the FCC.

Ford motor company actually looks poised to come out of this a big winner, (with a little help from investors), and here's why:

1. The Obama administration won't let Ford go down. This is great support for investors.
2. Hedge funds are out of steam (and under scrutiny).
3. New SEC. Say hello again to the uptick rule and banking regulation.
4. Banks will start lending and consumers will start buying, (summer 09).
5. Ford has a World Class and diverse product line-up, with more to come. (40 mpg Fiesta, 40 mpg Fusion Hybrid)
6. Ford quality is as good or better than Honda and Toyota across the board. (Ref. Consumer reports and JD Power & Associates).
7. Sales of Trucks and Big SUV's will recover in 09 as gas prices hover around $1.50/gal through 2010. Big revenue for Ford. Ford's big F-150 and Expedition now get 20 mpg, highway.
8. Ford is growing in China, and has a strong foothold in Western Europe. Have you seen these European cars?
9. Despite the bad PR from the congressional circus act, Ford only needs consumer lending to flow and the economy to pick up to become profitable again. They need oxygen, not surgery.
10. Ford operations in 90% of their facilities are as lean as Toyota, Nissian and Honda, and the Unions are working hard on a bridge compromise that defers some legacy costs until the economy recovers.

With regard to Ford, perception just doesn't match reality. Give this company some economic air, and they not only survive, they thrive! If economic air is not available over the next several months, then we need to offer up some investment grade oxygen. This company was making all the right moves, then the hedge funds and mortgage crisis hit. This was the perfect storm as Ford was heavily invested in positive change. They reacted quicker than GM and Chryslerberus, mortgaging everthing but the F-150 logo, which is why they remain viable today.

Ford is an American Icon. The company is woven into the American fabric, literally. This is one company that's worth saving, deserves our support and the true story to be told. As with Harley Davidson, investors have an opportunity to save this company, and reap the rewards down the road, yet we choose to group this company with the likes of GM and Chryslerberus, beacause it's convenient. The BIG THREE, right?

No. Smart investors will jump at this opportunity for all the reasons stated above, and after all is said and done, those investors can be proud to say that they helped save an American Icon, along with Capitalism and the American economy. So I say damn the hedge funds and the ignorance of the media. Screw the worthless ratings. We don't need no stinking bailout, just the power of optimistic Capitalism and a little Patriotism.

Where would America be today without Harley Davidson? Who would we be? Or a better question; Who are we? For the same reasons, I say Ford is worth saving, just as Harley Davidson was in the 80's.

GM and Chryslerberus need major surgery, but Ford just needs a dose of oxygen from investors until the Obama economy emerges early summer of 09. I say we Bull Rush Ford! Let's show the developing world that American Capitalism and Patriotism are alive.

Author and "recent" Ford shareholder,
Phil Black, IDSA
[e-mail]

Comments welcome