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Do you think Ford survives this restructuring?

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scooter1369;753052; said:
Ford is not in trouble. By reporting such a financial loss, they can break the union and reduce overhead. Chevy did the same thing a few years ago. Look at them now.
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But Chevy makes Chevys, and Ford makes Fords ... that's their problem. :biggrin:
 
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the biggest risk to buying bonds is that a company will go bankrupt and you will only get a percentage of what you paid (the face value). these bonds are guaranteed by their factories machines etc. so if they default, they sell the machines, factories etc and they have enough to settle with the bond holders making them very close to risk free. the problem is that banks got this deal. it wasn't made public. what was made public though is a 4 billion or so bond deal that offers the possibility of converting to Ford shares if the price goes up. Ford stock has been rising recently. The bond pays less than the US treasury rate becuase of the imbedded option to convert to ford stock. I got this quote from an article.

"The 30-year convertible bonds -- which Ford raised from $3 billion after strong demand from Wall Street -- offer several advantages over Ford's common stock. While Ford's stock dividend has been eliminated, the bonds pay a 4.25% interest rate. The bonds can be converted into shares if Ford's stock prices rise to between $9.05 and $9.20 a share; at those prices, some 500 million more shares could be added to the 1.9 billion Ford shares already on the market, diluting the value of the shares outstanding today."

"And were Ford to declare bankruptcy, the bondholders would be a step ahead of regular shareholders for a share of the company's assets. The convertible bond even includes a form of insurance for the bondholders in case Ford brings back its dividend."
 
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sandgk;754716; said:
How so? Truly, I am intrigued by how debt instruments and their derivatives are priced.
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Due to their poor performance there ratings have been dropped below the S&P's lowest investment grade. This puts pressure on existing bonds, and lowers prices and raises yield. fourteenandoh will no more though.
 
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The government will never allow a company like Ford to go under IMO. I think Ford is garbage and their cars are poorly made, but I just dont see them non existent.

A poster had mentioned Chrysler as a a problem. I think this company has been downhill ever since they joined Daimler with Mercedes. Mercedes has struggled ever since. They just do not make good quality cars anymore, IMO.
 
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THEWOOD;755269; said:
The government will never allow a company like Ford to go under IMO. I think Ford is garbage and their cars are poorly made, but I just dont see them non existent.

A poster had mentioned Chrysler as a a problem. I think this company has been downhill ever since they joined Daimler with Mercedes. Mercedes has struggled ever since. They just do not make good quality cars anymore, IMO.
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I've never had a problem with a Chrysler (or Dodge), but I've had problems with both Chevy and Ford....
 
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BUCKYLE;755420; said:
I've had problems with Chrysler and Ford, but never Chevy.
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I'm pretty sure everyone has a combination of the 3.

My wife had a Chevy when we were dating. It was all we could do to get the damn thing to run and that wasn't running well.

But I've had 5 Dodge/Chrysler/Jeep vehicles and beyond normal maintenance issues (and a wreck) all were/are very good cars. My dad still has 2 of the 5 as I've sold some off to get newer ones and one we were able to donate to charity... :biggrin:
 
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martinss01;752597; said:
ford will survive. chevy will survive. dodge will survive. our tax dollars will see to it.
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Not so sure about that, the government didn't save the steel workers, or the steel workers Union. Three things will happen, UAW will unionize the Japanese, the big three will break the union, or UAW will break the big three. The fact that the big three have survived as long as they have is a miracle to me. US auto makers can not put the money into R&D, or quality control that the Japanese do, because they are paying for pensions, health care and other things that the jappanese don't pay as much for. As with all things in the economy, market forces will sort things out. The big three's declining market share tells us that the consumer would rather pay a car company that puts more money into R&D, and quality control, than a company that pays union wages and benefits. Thats bad news for UAW.
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jimotis4heisman;755606; said:
i heard someone say they had more recalls last year than cars made. impressive...
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That is not an indictment on the quality of the automobile, but rather the quality of customer service you get with a Japanese company.

I received a recall letter on my 2000 Camry two years ago notifying me that some dealers sold replacement corner bulbs that offered poor illumination.

You won't receive a recall letter from an American auto manufacturer unless there is the potential for your vehicle to explode into a fiery ball of death, and even then the letter won't arrive until at least 100 other people are dead, CNN has trashed your brand name for an entire quarter, and the actuaries and PR firm finally concede it'd be more cost effective to send people mail than pay any more wrongful death settlements.
 
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