Quote:
Originally Posted by originalhypa At least they pulled through the economy without gov't handouts. They earned it. |
They pulled through without gov plan, because they borrowed a ton of money from the marketplace... and because it is still a family shop.
If you look Ford's debt to equity ratio, they are at the bottom of the pile.. not just in the sector, but pretty much of all large cap companies.. On the upside, at least they are writing the debt down by passing it to the unions. So when they go down, they will be dragging large unions like UAW with them.
With inflation going up like in UK etc.. they are on borrowed time. Once the interest rate ticks up, they will be the first to fall.
Honestly "they pulled through without gov't help" protected the Ford family the most (since they didn't loose their holdings), so now F has recovered they can cash out their holdings without being wiped out if there is a bailout... oh that and a marketing gimmick.
I don't think for this thread it is useful to paint one make with one brush.. It is much useful to look at the reliability of Equinox (after its facelift to be precise).