Moody's cuts Ford credit rating to 'junk' status

Discussion in 'General Discussion' started by cmiles97, Sep 10, 2019.

  1. cmiles97

    cmiles97 Full Access Members

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  2. TDGFordGuy

    TDGFordGuy Member

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    Oh man... the answer would take a whole book to write.
    So many factors.
    1. Being the Globalists are upgrading the bankrupt GM and Mopar(Fiat owned) while down grading the only solvent USA auto manufacturer. Sounds like market manipulation to me. Look for giant investor groups & banks buying up all the dirt cheap Ford stock and debt.
    2. Ford was making money hand over fist until the "restructuring" began, this is the new fad of the corporate world, "If you pay me $20million, I can fix your company by getting rid of half of your employees!" It's been happening on the Railroads for over 2 years and now the shippers are having meetings with Congress because service has gotten SO bad.
    3. Over Priced Products. Discontinuance of affordable products because there "wasn't enough" profit margin.
    4. Forced (by choice) to pay foreign parts suppliers'/manufacturers' prices for the vehicle parts being effected by global buyers instead of making the parts in-house in the US where they can control the supply.
    5. Is America at the breaking point where there aren't enough working people to buy the products made for and by the remaining people working in US factories? When do we draw a line at automation in manufacturing when no one can buy the products? (Pretty much every robot AI sci-fi movie coming true.)

    I know there will be a hundred different opinions on this. These are mine. Take it for what it's worth to you.
     
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  3. MrSticker

    MrSticker Full Access Members

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    Why do you say that GM is bankrupt?
    Isn't that 10 years out of date?

    https://amp-businessinsider-com.cdn.ampproject.org/v/s/amp.businessinsider.com/gm-mary-barra-management-helped-save-automaker-2018-10?amp_js_v=a2&amp_gsa=1&usqp=mq331AQEKAFwAQ==#aoh=15681945266144&referrer=https://www.google.com&amp_tf=From %1$s

    Also ... Unemployment is extremely low by any measure and the American consumer is powering the economy and has for the past 10 years. Economics is wicked complicated. I don't claim to understand it.
     
  4. TDGFordGuy

    TDGFordGuy Member

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    GM will always be bankrupt in my book. Closing factories in US costing 14,700 USA PEOPLE their way of life (you got to figure each one was head of household and effected 14,700 FAMILIES/Households) after TAKING $11 BILLION ($11,000,000,000) of OUR MONEY. And then shoving it in our faces with endless TV ads of vehicles made in Mexico/Canada. GM still hasn't cut the American people an $11 BILLION dollar check... $35 per every man, woman, & child in the USA. I walked out of a movie theater cause of the new Blazer commercial running like 5 times before the previews. Asked for my money back for the tickets. How about giving the $11Bil to the 14,700 former employees?!?! About $745,000 per household for outsourcing their jobs to the poorest people on the planet. I'm all for the economy thriving... but these corporate raiders are doing their best to end overall prosperity in the USA. Don't believe everything you read, MANY of these magazines\media companies are owned by the same people running other companies into the ground. These CEOs are only in it for the short term, they don't care if the company folds 5 days after they get their payday.

    RANT OVER.
     
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  5. MrSticker

    MrSticker Full Access Members

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    Understand the frustration. However if you seek the facts, all the money was paid back and then some to the US Treasury. It was the GM bondholders & stockholders that took the haircut.

    And would you like to see them go bankrupt again because of poor business management ... As an employment game to keep people employed? Or would you like to see them run it like a business?

    And by the way the UAW and auto workers made out like a bandit on that deal , at the expense of the bondholders. It was all illegal as he'll but the Feds can do anything they want anytime they want in this country.

    I think there are so many false facts propagated in this country is what enrages so many people unneccasarily.

    Which union are you a member of?
     
    Last edited: Sep 12, 2019
  6. Trainmaster

    Trainmaster Old School Member

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    Moody is political? This is the same Moodys that gave Collateralized Mortgage Obligation Bonds a Aaa rating in 2006.
     
  7. JExpedition07

    JExpedition07 Ultimate Member Supporting Member

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    Jim Hackett is the single worst CEO of Ford in my young lifetime, he just sucks.

    They’ve slashed production of popular power-plants, overpriced vehicles to the point sales have dramatically fallen. Slashed production of passenger sedans (very stupid move) if there is ever another gas crunch in the future (hint), they are f*cked. They discontinued many popular American models for European to globalize and GM continues to eat their lunch. Why? GM is making what consumers want at a more fair target price and Taylor’s the product to the market. Something Ford used to do but thought they could save a dime by globalizing all their vehicles in a one size fits all approach (BIG MISTAKE), perhaps Fords biggest to date. GM also has their own global operations under much better control and has their identity defined strongly. Ford is so confused these days they can’t tell you who they are or what they believe. Ford was a much more unified organization in the 2000’s than the unorganized cluster it is now under Jim the hack.

    In business school we’ve always been told a strong central identity is imperative to a successful organization. Ford has lost that identity it once had in my eyes, very disorganized and confused as an organization. I agree in 2009 you are correct, Ford stood stronger and held through...these days? No way, GM is a much stronger company.
     
  8. ManUpOrShutUp

    ManUpOrShutUp Full Access Members

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    All of that is normal business practice for Ford.
     
  9. jeff kushner

    jeff kushner Full Access Members

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    Why would buy a stock whose dividends are so small? NONE of the manufacturing stocks typically pay dividends so in reality, you are praying for the stock to increase in price but investors of this nature do not care ....they are in it for the % of board ownership.

    What do I know, I tried the market back in '18....and lost 30K in 45 days....I'm back above board now but that was a brutal lesson!

    jeff
     
  10. TDGFordGuy

    TDGFordGuy Member

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    https://www.reuters.com/article/us-autos-gm-treasury-idusbrea3t0mr20140430

    "WASHINGTON (Reuters) - The U.S. government lost $11.2 billion on its bailout of General Motors Co (GM.N), more than the $10.3 billion the Treasury Department estimated when it sold its remaining GM shares in December, according to a government report released on Wednesday.

    The $11.2 billion loss includes a write-off in March of the government’s remaining $826 million investment in “old” GM, the quarterly report by a Treasury watchdog said.

    The U.S. government spent about $50 billion to bail out GM. As a result of the company’s 2009 bankruptcy, the government’s investment was converted to a 61 percent equity stake in the Detroit-based automaker, plus preferred shares and a loan..."
     
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