November 30, 2006
I think I have this right: Ford is raising $18 billion, mortgaging everything everywhere, in order to spend $17 billion in a restructuring to stop its current revenue loss of close to $10 billion a year. 38,000 employees, a startling percentage of Ford's workforce, have headed for the exit, taking Ford's buyout offer. [This is a class action suit waiting to happen. Those that have left will sue if the company does well (company lied) and those that remain will sue it if does not (company lied).] So the new creditors are betting that Ford will service the new debt with its new profits generated after the turnaround that will follow the restructuring. Its new products that will produce the profit look like Lexus knockoffs (the knockoff strategy worked for Japan in the 70s). I hope the creditors will enjoy running their new automobile company in a year or two. I will take the Jaguar division if they want to sell it for a couple of bucks plus an assumption of its obligations.
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"to stop its current revenue loss of close to $10 million a year."
Could be wrong, but I think you mean billions, not millions?
Posted by: Ian Welsh | Dec 1, 2006 3:43:37 AM
THE EMPLOYEES THAT ARE TAKING THIS BUYOUT ARE SIGNING PAPERS THAT SAY THEY WILL NOT PURSUE A LEGAL SUIT OR ANY OTHER LEGAL MEANS TO GET MONEY FROM THE COMPANY. I FOR ONE DONT BELIEVE WHAT THE COMPANY IS DOING IS RIGHT. ALOT OF THE PEOPLE THAT THEY ARE GETTING RID OF ARE THE ONES THAT KNOW HOW TO MAKE A CAR. IAM A RETIRED HOURLY WORKER AND EVER SINCE FORD STARTED HIRING COLLEGE GRADS THIS COMPANY HAS GONE DOWN HILL. LOOK AT IT THIS WAY YOU WOULDNT HIRE A DOCTOR TO BUILD YOUR HOUSE WOULD YOU? THE UPPER MANEGMENT HAS BEEN GETTING BAD INTEL FOR QUITE SOME TIME NOW.THIS MASS EXIDIOUS OF EMPLOYEES CAN ONLY DO MORE HARM THAN GOOD.
Posted by: kenneth zapior | Dec 1, 2006 10:59:00 AM