Ford - Balancing On The Brink Of Bankruptcy
HTML-код
- Опубликовано: 26 июл 2024
- Lock In High Yields For The Long Term:
www.silomarkets.com/launch
Ford is one of the most iconic automakers in the entire world given that they literally invented the modern car. They also popularized the 40-hour work week, and the assembly line and they’re the only American legacy automaker to have never gone bankrupt. Despite this rich history, Ford isn’t exactly in the best of positions right now. In fact, they’ve been burdened with debt ever since the 2008 financial crisis, and they’ve never been able to dig themselves out. Currently, their total liabilities come in at over $200 billion, and while they’re are a few corporations with even more debt, Ford is much smaller than these other corporations. This means that Ford is likely the most leveraged company in the world. Despite this debt constantly weighing down on its balance sheet, Ford has been doing their best to evolve to the next level. For example, in terms of legacy automakers, they’ve been one of the first to completely embrace EVs. While this is no doubt a risky move, this may be exactly what Ford needs to reach a new level of profitability and size allowing them to finally reduce their debt load. This video explains the dire state of Ford’s balance sheet and Ford’s historic pivot into EVs.
Earn Interest From The Government & Top Corporations:
(iOS App for US Residents)
www.silomarkets.com/waiting-l...
Free Weekly Newsletter With Insiders:
logicallyanswered.substack.com/
Socials:
/ hariharan.jayakumar
Discord Community:
/ discord
Timestamps:
0:00 - Ford’s Balance Sheet
1:46 - One Bad Leader
4:49 - Narrowly Avoiding Bankruptcy
7:43 - Crossroads
10:23 - The State Of Ford
Thumbnail Credit:
Paul Chinn
bit.ly/3e0p0qt
Resources:
pastebin.com/zsuu30qQ
Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
www.silomarkets.com/disclosures
![Finesse2Tymes - Pretty Ricky [Official Music Video]](http://i.ytimg.com/vi/xIoP_mhYRT0/mqdefault.jpg)
As a Ford I can confirm. Story of my life.
Hahaha
@@LogicallyAnswered As a Jack I can confirm that's not the pronounciation of "Jacques"
Thanks for sharing your life, truly inspired me to become a better person
I see what you did there.. Well played sir... Well played 🤪🤣
Ford's debt isn't bad. Automakers appear to have high debt because they run their own financing operations. The liabilities listed aren't traditional debt as we think of them. they generate returns for ford.
That is true to some extent, but as anyone who has ever been to a ford dealership will tell you, they offer artificially low rates to sell their inventory - 0.99 APR's are never "real" interest rates that reflect the actual cost of money. We can see the problems in two places:
First, Ford Credit has approximately 100Billion in Net receivables, while also sporting around 140Billion in debt. Additionally, the segment's EBT vs. total receivables calculation suggests an average of 4% return on their assets. Recent debt offering put the company's borrowing costs at closer to 6-ish%. All of this to say that yes, Ford's actual debt numbers are nowhere near as bad as they look once you factor in the receivables (similar to how you would for a bank) - the Ford Credit segment isn't really a very efficient operation and is there mainly to support the car business - being a relatively bad return on its own.
I don't see how them having their own receivables in any way diminishes the importance of their own debt. I mean it dampens the effect of interest rate increases, so there's that, but it doesn't change the fact that they owe $140 B, during a time when they will need to make large investments to transition to electric.
@@decus9544 because they don't owe 140 bil dollars. Their actual debt is 25 bil. The 115 bil is what the normal balance sheet of a financial firm looks like.
The problem is that makes Ford's debt EVEN WORSE. Here's why. What happens if a bunch of consumers fall underwater on their auto loans and decide to default on them? Ford eats the loss. This is even worse when you consider the fact that the vast majority of those loans are on ICE vehicles, which will see their resale value decline more rapidly in the future as consumer demand shifts towards EVs. IMHO I think there's a better then 50/50 chance that Ford goes bankrupt, in part because of their auto loans, and in part because switching to EV's is going to be REALLY frigging expensive and require Ford move really fast, faster than they're already moving.
Ehh kinda is if you compare to tesla
According to the balance sheet at 0:28. Ford (Excluding Ford Credit), has about 25 Billion in "debt". The rest is are just the liabilities associated with running a bank (i.e. Ford Credit).
The problem with running a bank is if people start defaulting and the bank starts repossessing cars it can't sell to cover what they're worth.
Dont they also have a lot of pension liabilities?
Ford has been having trouble for decades now but they still are making those Ford truck commercials!! People still love their trucks!!
Yep hahaha
People don't love f.o.r.d it's just the cheapest truck and they keep showing them commercials so you can think they're still the best which they never were
Same
@@MrTruehoustonian I love my F150
@@trump1105 I'm sure you do Lewis but every f.o.r.d I ever owned has been more problems then I care for, and I love my Chevy hehe later
Brother, hope you had an amazing week!! Glad that you have continued to make videos!!
Thank you as always Daniel!
Sold a friend a 2000 Lexus RX300 recently as his Ford car is sitting broken, rear axle or something IIRC. Almost 300k miles on the Lexus and still going strong, even though the Ford car was newer AFAIK. I feel like for ICE vehicles 90's (ok maybe osme 80s) to pre 2008 Toyotas are the best you're going to get going forward. Currently driving a 2010 RX350.
Toyota has more debt than Ford
@@OneManOnFire Toyota vehicles are far better,financial issues aside.
@@shawnb1774 Let me know when they offer diesel or a electric car with wheels that won't fall off. Let know when they offer a heavy duty truck like 2500 or 3500. As someone who has a Land Cruiser you know the one they discounted in USA I question their management. The same management that didn't want offer Android Auto for the longest.
The original henry ford would be dissapointed. His philosophy is to take no debt, and make very practical cars at the lowest price possible. Instead we see the ceo buy land rover........
He would also try to keep 100% ownership as shareholder incentives are bad for the company
And everything has to be black
a few months ago, you made a video about "Don't underestimate ford"
Whoever did the thumbnail for this video deserves an award
Hahaha thanks man!
Part of why I like watching this channel is that I'm interested in the video content, the other part is listening to Ari and working out what he's saying half the time. He talks fast, right!?
Good video, great channel, really enjoying your topics and content so far 👍
Love your Chanel!!!
In cars industry as well as any other business, QUALITY IS KING.
innovation and good prices/ services are important but quality is essential .
This is the first time I bought a Ford. It will be the last.
I've been a Ford owner my entire adult life. The quality of the last 10-15 years is making me question my decisions. I have a 3.5 egoboost f-150 with only 72k miles and a new timing system and turbos. My wife had an automatic focus...had. That transmission was worse than my egoboost.
Personally, when buying an everyday car, I look at the price, reliability, and cost of maintenance. Ford's mpg is too low (high fuel cost) and doesnt have as clean a reliability record as its Japanese counterparts. Price range is relatively ok.
Quality of life bonus: Ford's interior leaves much to be desired.
Fair enough
All completely objective. Obviously Ford is doing something right still, otherwise the F150 would not be the best selling vehicle in America (besting even the "superior" Japanese options.)
You been inside a Toyota or Kia? It's like 5 different teams who never talked to one another designed the interiors. Different shape buttons / knobs, varying colours. Just a complete mess
@@spacebound1969 I like the F150 tbh. When I typed my comment out I had Ford's passenger cars (sedans) in mind: those are terrible imo.
@@charlisantini3403 I dont drive a Toyota or Kia, I drive a 2015 Mazda, which I have mostly good things to say about. But even if what you said is true, the interior is still secondary to me. Their engine reliability is much more important to me, which Ford hasnt been known for.
Love your videos bro keep going
Love your videos keep it up 👍
Thank you Adrian!
Ford just walked out of Brazil, South Africa, India and Australia
Exellent content as always
Respect
Thanks man! I really appreciate your support!
Building a business is scary as much ...
If it ain't a problem with rep ...
It's a problem with debt ...
😂
I know many people who worked at Volvo when Ford was running things. From managers to lower downs. First they were very thankful. Then they discovered the American way of working. Managers micro managed and wanted to make cheap stuff and sell broken cars. Everyone at Volvo was furious. The Chinese were much, much better.
Now please, Grand Ethiopian Renaissance Dam. Just the name is amazing.
Interesting hahaha
You had me in the first half not gonna lie
I think Ford will make it through this, I hope they do, but if it comes extremally close, I wouldn't be surprised if they reached out to Elon Musk, aka Tesla, to buy them out since they are American based. Knowing Elon, he would see it as an opportunity to expand into even more EV models, Tesla being the Luxury brand and Ford the middle man brand, much like what KIA is to Hyundai.
Ford is certainly in better shape than GM (which I think is virtually certain to go bankrupt given their debt and Barra's incompetent management), but I think there's still a good chance they go bankrupt. Ford's problem is several fold - 1) The EV transition is going to be REALLY expensive. Just converting all their factories over to making EV's will cost 10s of billions of dollars and require throwing out a bunch of now worthless equipment for building ICE vehicles. 2) If Ford doesn't move fast enough (and I don't think they are, as seen by things like the Mach-E chart you showed) then competitors WILL steal Ford's market share as consumer preferences shift towards EV's that Ford can't supply. 3) Ford is in a really tricky situation, and will continue to be for the next 5+ years, where they'll need their ICE segment to stick around to fund their not yet profitable EV segment. This will make it difficult for Ford to embrace EV's too much to the general public, because if Ford says "hey guys EV's are way better than ICE vehicles" then Ford will be hurting their own ICE sales.
So in a sense, Ford's massive size is essentially going to work against it for a while.
Yeah, they’re definitely in a tricky situation, but I think they’ve got a shot!
Wait isn’t ford going to split into two companies ford electric and ford blue?
And here's a thought, what if the future is hydrogen cars and not electric? They are really betting the farm here.
erm im pretty sure its not that much different. all your doing is sticking a battery in and instead of a ice engine, you stick a electric motor in. everything else fitting wise wont change that much. i think people big up evs more than they need too.
@@JB-yb4wn that would stuff tesla
How many times is the government going to get involved in the automobile companies that file fir bankruptcy?
Honestly this channel is underrated
I love these shutterstock videos
I loved antiques as a kid. Growing up in the 2000s, you realized that the every-day things being built weren’t of the greatest quality. Almost like they were meant to break easily and not last. If kids can look at an old car and realize that their parent’s car wouldn’t last the ages, then it’s time to go back. Never say never
$200 billion is nearly THREE TIMES the total national debt of the Philippines, an entire country of 100 million people.
Investment is the upper hemisphere of wealth. This is one more reason why you must save and invest to ensure profit and ensure success.
There are many RIAs out there, but finding a trustworthy person to help seems to be a big problem. That's why I'm working with Larry Kent Nick and so far it's been worth it. Larry Kent Nick doesn't go back on his words and unlike most financial advisors he isn't after your money but to make sure he serves you better.
@ Larry Kent Nick Trading
You keep talking about "Ford's Focus" 🤣
😂
Ford will be the best they've ever been in the next couple years. Their recent investments have been brilliant, and they released tons of super popular new models like the maverick
Yeah that’s very possible. Ford is betting big on EVs and that could be very fruitful.
@@LogicallyAnswered especially with the new California requirements
They've got at least 4 expensive recalls now that are going to cost billions and then there's the consumer sentiment that comes with it. The MachE has a bad contactor because of skimpy design. They won't be the best they've ever been.
And recalled every single one of them. Even the Mach E has been recalled again. This time for self starting fires.
@@dannysdailys
The self-starting fire option is not available on all models. 😁
America needs to let go of its zombie companies...
The Mustang & F150 is really the only 2 cars that’s keeping Ford afloat
Idk man, they're making bank on those Broncos right now. If only they could keep up with demand
Where did you get those stats from?
Thanks for the vid.
Maybe look in to Ford's reveye streams. Much more than cars and trucks, my friend. Motorcraft, service, loans, insurance and they own the largest chain of charging stations in North America.
I'm making the best cars was never fords thing 😂
Haven't bought a ford since 1996. Just been driving Dodge mostly now
with high interest rates and a crisis coming they definitely dont look like a good stock to pick...
How much have they spent on recalls in the last 10 years?
Seems to me both Boeing and Ford have a serious dose of the Me-Me - "The market will do what I say. Me! Me! Me!". Nope!
I hope it don't go bankrupt due to the Legacy and if I'm right they're the only usa car company that can compete against foreign companies.
As with many super successful companies the upper management is critical to the survival of that company and it is a shame how they always seem to employ an absolute idiot to take the top job which kills the company and leaving the consumers to suffer.. the commodore amiga is another example of this success illness that completely killed the company..
An all electric ford? I couldn’t imagine something less reliable.
I see a pattern w/ these distressed firms, its that a new CEO tries to pivot the company away from its core business. While diversification is important, each business should be independent and focus on what it is good at.
As one of the early leaders in the Car Industry, Ford deserves a chance to make some sort of comeback after poor leadership lead them astray.
This is an amazing video and i enjoyed every bit of it. And i'm also excited to share my investment experience so far this year. I believe it will help a lot of people here who are confused on how to startup theirs and be productive for the year.
From my own point of view, you need to invest smartly if you need the good things of life. so far, i've made over $355k in raw profits from just q4 of the market from my diversified portfolio strategy and i believe anyone can do it if you have the right strategy. Mutual funds takes long time, but investing smartly is the key for short term. Most of us tends to pay more attention to the shiniest position in the market to the cost of proper diversification.
@@hoshifuyo4494 Wow!!!,
This is super awesome. I'm willing to start saving properly or at least have a good investment. Please tell me more about it. I'm an amateur investor, i have 2 IRAs, I do not like the cookie cutter responses from; Fidelity, Vanguard Schwab, etc 7%-9% year on average. How do you invest?
My portfolio is very much diversified, so it's not like i have a particular fund i invest in, plus i don't do that by myself. I follow the trades of WINONA ALETHEA LIVINGSTON. She is a popular broker you might have heard of. I can correctly say she's worth her salt as a financial adviser, as her diversification skills are top notch. I
say so because i see that in her results, as my portfolio grows by averages of 10 to 15% on a monthly basis. Unlike i can say for my IRA which has just been trudging along. My portfolio just mirrors what she trades and not just on some particular industries of my choosing.
@@hoshifuyo4494 By following trades, do you mean copying her trades, as it is done in etoro? Are you giving her your money or the money says in your account? I have heard about copying trades but have not looked into it. But i have an idea of what it is.
Yeah exactly. My money stays right in my account. It's all programmatic, plus it's relatively much easier to set up and connect my accounts, than creating a financial plan and drafting investment strategies myself. My account just mirrors her trades in realtime.
Toyota seems like the only sane manufacturer in this race
Its a bit extreme to suggest bankruptcy. Ford has plenty of arrows in its quiver. It wouldn't have unpaused dividends if it couldn't afford to
$200B in debt 👀👀👀ford got more debt than my country
How ironic
Pakistan?
could u do the same video about gm?
Thanks for the suggestion Altair!
They know the dumb citizens will bail them out.
7:15 drugs? Lol
I swore off GM after the bailouts and have only bought Ford and Dodge since then.
Use to be a time that there made quality cars from ford and gm but there do now not like before
I've done my part, my last two new cars were Ford's, 2015 focus and 2022 Maverick. Common ford
EV’S are a great idea.
The real problem has problem is lack of supporting power infrastructures, look at the current power supply systems, there are rolling blackouts and/or brownouts. Most power supply (power companies)systems are working at or near maximum capacity. A serious national power system upgrade is needed. Demands are going to grow exponentially in the coming decades with electric cars, reduction of carbon footprint, reduction of CO2 levels and other known and and unknown demands.
More power is needed to supply energy for the EV’S, we need to be looking at additional alternative power with wind, solar, hydro or any other power source/s.
I have encountered, a couple people that have a system in place to be self sustaining, they use solar to run their home and charge their car.
Dale
EV's are a great idea on paper, the real problems are their high cost, shorter lifespan, battery density, their weight, increased tire wear, the lack of charging stations, charging time, and the power grid being unable to handle everyone using pure electric. currently gas and diesel last longer, can be refueled anywhere, and don't have nearly as much range reduction that electrics have.
Ford will be fine, they are extremely popular overseas, esp the f150 and ranger
When your management/board are focused only on profits, this is what happens. Similar story with GM.
Very sharp presentation. Is this a financial firm or an auto firm.....certainly not a tech firm.
What Tesla shines in is the technology....ie motors, electronics, software.
The amazing stumbles with the Transit Vans....
The inability to make/sell great numbers of e-Mustangs...
They need better engineering and execution
The number crunchers are crushing the technology and thus their future.
11:22 “all they can do is continue what they’re already doing.”
yeah providing financial loans and selling F-150s, end of story.
Ford- Built on Debt
Yes sir hahaha
I miss for focus and ford fiesta . Not all buyer need trucks . 😭
F150s are the most popular vehicle in Canada. Ford not in a bad position lol
They would have been better off ignoring EV's
I mean why not talk about gm being bailed out twice. Or how their practically government motor company now.
If I ran Ford :
1. Smash Volvo into Jaguar while never buying Land Rover. Create a new Luxury brand [Jaguar Volvo.]
2. Destroy all 2000 and 2010 era debt by any means possible.
3. Do the EV SUV kink, oh wait they got that covered.
4. Change the logo to brainwash kids with some Matrix junk.
5. Make the Focus chase the Corolla out of the market.
Ford is a famous company, famous as The Wizard of Oz. Every single car company bows to the assembly line perfected by Ford. Jacques however, took all their money and BLEW IT like bad Coke out his pipe dream to ignore real cars. Ford can only hope that at this point the "EV kink" will float their debt service. Now the Chinese have Volvo and the situation is dire...
As an american mechanic for 20 years. No one sells more junk, and purposely poor engineering, in hope to create more revenue in parts sales, or lease you into a new car.
Ford sells money flowing assets, no vehicles.
This is gonna age like milk
Yeah that’s very possible. They’re betting big on EVs and that could be their savior.
Ford is really dropping the ball, they had to exit even the Indian market where Japanese,South Korean and Indian companies thrive, They had a very good car called the Ecosport, well made and solid performance(partnered with Mahindra(an automobile company to modify a new petrol engine which was well received), but then they did not follow up on this hugely successful car and now are in talks with the Indian government for a return back to the market for a second try under the PLI scheme, apparently Ford has struggled even worse in Europe and Latin America.
Ford and GM should had invaded the Japanese market with the Australian operations around the '80s or so. I agree they should make something for the Indian operations.
I'm sorry, but the ecosport doesn't hold a candle to the CRV, HRV, RAV4.
ford dropped the ball about 40-50 years ago and has yet to come close to finding out where it rolled off to.
They should go bankrupt for the 4o hour work week
Just focus on building quality vehicles,every ford i've ever owned had problems.
What, how is this good analysis when you didn’t even touch on how their liabilities mostly come from their captive financing subsidiary???
Plus the Mach E isn't profitable...so the more they make the more money they lose!
Volvo???? As a lifestyle brand???? Who is his dealer man???
A good informative video but I didn’t understand half of what the guy was saying
Hi!
Hey man!
Bro where you live in America
Ford fix or repair daily.
Hahaha
labeling an electric cross over a Mustang was genuinely too far
Ford is not the only american automaker to never have gone bankrupt. Tesla has also never gone bankrupt.
Somehow I find this very stupid. Company that is on a brink of collapse wouldn’t resume its stock dividend payouts.
It is difficult for these US elephants to survive. Ford didn't embrace EVs, it's probably too late for them now.
Ford is has the same market cap as it's cash reserve
Super video sir put about the legacy of tata❤️
Thanks for the suggestion Suganth
Tatas were india’s legacy and they also gone to many sufferings and had many turnover stories
I own a 2007 Ford F-150, five speed, and it’s the best truck I’ve ever owned.
I want them all to go bankrupt.
Ford's transition to EVs is going to be it's downfall
they need Carlos Ghosn to save them, he did this miracle before with Renault and Nissan, but the world's business and political elite decided to crush him since he was not from a European blood but an Arab from Lebanese roots.
They would be in a hell a lot of sh1t if ev's didn't take of as they expect it to
Love the way he’s trolling Ford. Hopefully, it will help my Tesla stocks go higher…
Fine Bailout Ford they can have a special case since the other big ones already took their loan
Hahaha, Ford took a loan too, they just didn’t need to file for bankruptcy like the others
U r selling that they will survive and then asking if they really will .. ironic
Ford is gonna go back up, just need to be patient. Ford is in a re-investment period, the last CEO really hurt ford.
We still need access to quality ICE trucks and cars. Foolish for GM, and Ford to abandon this market. Listening to The White House is a bad idea in business decision-making. Especially this WH.
is this still afFordable ?
Boomer privilege: get a well paid desk job as a walk on at twenty without education and never look back
Make a video o TaTa moters
The Mr Miyagi crypto bots are thick in these comments
Wtf they sell the best selling car how is it possible
Listen. Get your facts straight ford is definitely not going bankrupt ever. They're doing financially very well and once again I think what holds weight means they've never had no resets and they've continued and always made it out of bad times without having to hit the bankruptcy/ reset button. They're doing great and they're going to keep doing great. Do the downs they'll be back up.
I thought tesla was the only one that didn't file for bankruptcy?
Tesla and Ford
You see
We heard this lie in 2008 And they got billions for a bale out, it's all game.