03-31-2009, 02:55 PM
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CC Member
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Join Date: Feb 2004
Location: Outside Miami,
FL
Cobra Make, Engine: Several
Posts: 949
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Not Ranked
Well, it is not exactly that FORD is doing things correct. They did have not such an awful year, but they started with lots and lots of cash, which is depleting.
Mostly, the FORD family does not wish to destroy their family heirloom. FORD is an old company that still has preferred shares, like the New York Times, that have special voting rights that allow the family to maintain effective control of the firm.
They likely cannot accept government money without losing those special shares and their control. FORD, if it becomes necessary, might file for protection without reorganization, if needed and they MIGHT be able to maintain control. But, they will be very unpopular if they do and succeed keeping control. So, they are just biding time and letting the market restructure, while setting alternative plans into detailed modeling games for the various likely and unlikely scenarios. Must be fun for the professionals to work on such structural, financial, legal and marketing issues.
The tricky thing to do would be to drop the UAW work rules and awful legacy costs, but keep family control. That will need lots of money, which means sell something big...
With luck and smart timing, their line of medium to modest size hybrids might carry them through this eco-terrorist storm. They are quiet as church mice at the moment, aren't they?
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Last edited by What'saCobra?; 03-31-2009 at 02:58 PM..
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