The Carmagedonn Thread: FCA and "Consolidation"

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The People at the Blue Oval Should Be Happy

Ford Posts a $1 Billion Profit, Exceptionally Good Q3 2009

Autoblog
Surprising news comes courtesy of Ford this morning in the form of an unexpectedly good third quarter report. The Blue Oval posted $997 million in positive net income over the third quarter, which represents its first operating profit in over a year. Even better news is that Ford's success was driven in part by actual product sales, with market share increasing in North America, South America and Europe.

Ford finished the third quarter with $23.8 billion in Automotive gross cash, which is $2.8 billion better than how it finished the previous quarter. Ford Credit, the financial arm of the automaker's operations, also posted relatively good numbers in the third quarter of 2009 with an after-tax profit of $427 million. Though Ford is selling fewer vehicles overall from the heyday of the early 2000s, its off-lease models aren't depreciating as rapidly as before and are selling for higher transaction prices at auction.

While making nearly a billion dollars in the third quarter of 2009 is welcome news, the automaker still has a tough road ahead in the coming years. In recognition of this fact, Ford isn't predicting solid profitability and consistently positive operating cash flow until 2011.

This is what happens when you make surprisingly good products available at a surprisingly good price. GM and Chrysler, I hope you're taking notes.
 
Awsome! Hey GM and Chrysler take note, Ford didn't take any bailout money and they are doing just fine. Ford has more products in more categories that people want to actually buy. I knew they were going to post a profit but not nearly by this much. Bravo Ford.
 
Hopefully my investments go up now. Ford only went up .58 today. When it does finally hit 9 I'm going to have to cash out and go on holiday somewhere nice :D.
 
I don't too particularly like Ford, but I have to be proud of them. Every time I see one I have to stop and think "wow, that is a pretty good car." Maybe that's just a sign that I've been in Michigan too long. But I don't think anybody can complain about seeing their domestic automakers building good stuff. Now if only GM and Chrysler would do the same...

Unfortunately, it's not all good news in Dearborn:

Autoblog
What's good for the goose may be good for the gander, but what works for one country or automaker doesn't necessarily work for another. So while the Canadian Auto Workers union may have approved a new agreement with Ford, below the 49th parallel their compatriots apparently feel otherwise.

Up for ratification over the past week and into the weekend was a proposal that would essentially grant Ford the same measures that unionized auto workers extended to Chrysler and General Motors in the midst of their bankruptcy proceedings. The measures include limitations placed on the unionized workers' rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created – or at least fewer to be lost.

Some union leaders pleaded with their constituents that ratification of the deal was essential to keeping all three of the Detroit automakers on an even keel, thereby maintaining a common ground on which to build negotiations for the future. However as voting drew to a close across the country this weekend, UAW members at three of Ford's largest U.S. plants – the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant – all voted against the new contract, making its passage now virtually impossible.

[Source: The Detroit News | Image: Scott Olson/Getty]

This is pretty unfortunate. It would have been important for Ford to bring their labor costs down to more competitive levels. Granted, they don't need the cheaper labor as much as GM and Chrysler, but it still would have been very good.
 
JCE
Awsome! Hey GM and Chrysler take note, Ford didn't take any bailout money and they are doing just fine. Ford has more products in more categories that people want to actually buy. I knew they were going to post a profit but not nearly by this much. Bravo Ford.

Actually... Ford applied for and accepted government money, anyway. The PR genius on Ford's part was not accepting the upfront loans or declaring bankruptcy... and keeping itself afloat long enough to get the DOE loan instead of getting "bailout money" earlier on.

This, along with a good product lineup, allowed them to build up good press with the customers... who wants to buy cars from a bankrupt company that goes begging to the government? Wise move, and it's paying off dividends.

This newer, leaner Ford may yet return to greatness...
 
Mulally organized some private loans early on as well, which I imagine have been re-negotiated to pretty good levels of interest as well. Honestly, I'm thankful Ford is doing so well, and furthermore, planning to bring so much back to the state. Now we just need a football team revolution that is as good as what's transforming their parent company.
 
Mullaly also saw the problem well in advance and mortgaged the hell out of its unnecessary assets so that they had tons of cash to burn through when times got rough.
 
Good News if You're an Opel Fan? GM Remains Your Parent

GM Board Opts to Call off Opel Sale

Autoblog
After months of negotiations with supplier Magna and its Russian partner Sberbank, General Motors has decided not to sell its Opel unit. The General mentioned in the post-jump press release that the new board of directors came to the decision to keep Opel due to GM's recovering financial situation coupled with an improving business environment in Europe. GM's move to keep Opel comes just one week after EU's Directorate-General for Competition began investigating the sale to Magna to be sure it was based on sound financial footing and not because of political influence from Germany.

GM CEO Fritz Henderson added in the company's release that the process was difficult for all parties but in the end "our goal has been to secure the best long-term solution for our customers, employees, suppliers and dealers, which is reflected in the decision reached today. This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall's long-term future."

Now that GM plans to keep Opel in its brand portfolio, the next move is to proceed with a painful restructuring that could see the loss of 10,000 jobs and the elimination of 30% of the Euro unit's structural costs. The reported tally for the restructuring could cost GM upwards of $4.4 billion, and some of that could come courtesy of cash received as part of the company's $50 billion US government bailout.

Now that GM is out of bankruptcy, the company is reportedly no longer barred from using bailout funds for countries or regions outside of the US. It's also possible that GM could get loans from Germany and or Great Britain to finance the restructuring. The Detroit MI-based automaker also intends to work with European unions to develop a plan that contributes to Opel's restructuring.

I'd say its a smart move, given the engineering arm of Opel/Vauxhall, and the regularly steady sales they seem to produce within Europe. Of course, things will be rough for a bit, but it will be for the better. Probably.


BAM! Auto Sales Turnaround? Only Kinda... Depends on Who You're Talking About

By the Numbers: October 2009 - Autoblog

General Motors Company : + 4.11%
- Cadillac : + 21.6%
- GMC : + 20.4%
- Buick : + 18.4%
- Chevrolet : + 8.5%
Ford Motor Company : + 3.07%
- Ford : + 3.5%
- Mercury: - 1.1%
- Lincoln: - 8.9%
- Volvo : + 19.3%
Chrysler Group LLC : - 30.4%
- Dodge : - 22.2%
- Chrysler: - 35.6%
- Jeep: - 36.8%
Toyota Motor Company : UNCH (-0.04%)
- Lexus : + 19.7%
- Toyota: - 2.32%
Honda North America: - 0.42 %
- Honda : UNCH (-0.01%)
- Acura : - 3.5%
 
Can I just say I'm extremely happy with the cancelling of the sale of Opel?:dopey: I quite like Opels, especially OPC models, and it's great to keep them in the family.:) I would have still liked them even if they were sold, but it's good they're still a part of GM.
 
BAM! Auto Sales Turnaround? Only Kinda... Depends on Who You're Talking About

I'm calling shenanigans on this one. Keep in mind that sometime around here last year is when the sales started dropping. So yes, sales are going up, but they have been for a little while. And it certainly isn't a everything's back to normal situation either.

But yes, we do know that we're past the bottom and sales are on the way back up. And that's good.
 
I only hope that HR managers get the message soon enough to start hiring manufacturing Engineers again. My career depends on it.
 
Wait, what? I never thought I'd see this happening.

Autoblog
BREAKING: GM to begin repaying $6.7 billion in US loans next month
General Motors will announce later today plans to repay the U.S. government some $6.7 billion in loans ahead of its initial due date of July 2015. The payments are expected to begin as early as next month, with $1 billion paid each quarter until the full sum is paid -- although that doesn't cover the total $50 billion the taxpayers have "invested" in the automaker after it declared bankruptcy earlier this year.

However, as the Washington Post points out, the amount the government will get back from GM depends on the value of the General's stock. With $6.7 billion in debt, $2.1 billion preferred stock and a 61 percent stake in the automaker, the $50 billion total is a long way off from being paid in full. And when GM reports its financial results tomorrow, it's not expected to show a profit, although the overall picture could be slightly better than anticipated.

Granted it's no where near the amount we gave them, but at least it's something.
 
GM repays: Um...yay?
GM keeps Saab: Damnit! I wanted to see a truly Swedish car again, and I know my MSN friend from Sweden wanted that, too.

Meow: :3
 
Most people in Sweden assume that GM will just shut down operations for Saab. Pity, I was actually quite looking forward to seeing the new 9-5 for real.
 
right now, if I had the money I'd tell GM "10 million cash for the division, take it or leave it"
 
I'm not sure, I think I heard something about the government giving them a couple bucks or something so they wouldn't.
 
I'm not sure, I think I heard something about the government giving them a couple bucks or something so they wouldn't.

As if that was any replacement for the real solution. My point was that they'll fall apart or go bankrupt anyway.

I'd be happy to be Chief Executive Omnis and do it for them.
 
So we get another random old white guy running the company? Whatever, GM is still not going to be any different.

I think the funniest thing though is that Fritz Henderson's daughter got on Facebook and went off on the haterz. I'd link the page but the language isn't forum friendly. I'm sure if you typed it into Google though you'd probably find it or one of the many motoring blogs...like Jalopnik. Just be warned though, strong language, poor spelling and awful grammar are present.
 
As a GM guy, I didn't want Fritz running the show in the first place. What's his face from AT&T isn't exactly high on my want list either. Its time that GM wises up, goes outside of the company and finds a young, energetic leader to turn the company around. That, or give Lutz the keys. Or give them to me.
 
Well at least we won't have to see his stupid face on that commercial again. What a pathetic commercial (PLEASE BUY OUR CRAP, PLEASE!).

I don't understand why GM just doesn't go full-circle bankrupt.

Oh crap, the guy on that commercial was Ed Whitacre. Ugh! I hate that guy!
 

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