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Ford Motor Co. Is Off Course…

stock market
photo by FordRacing
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…and has been for some time, unfortunately we’re only starting learn about it now in the last few months. To add insult to injury to the American people, so is General Motors and Chrysler.
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The CEO’s from the three automakers along with the head of the United Auto Workers union went to Capital Hill today to get more financial aid from the government for their failing companies, even willing to go so far as to give their right arms for it.
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This not the first time either, earlier this year they received $25 billion from Congress to help with the cost of manufacturing equipment that they said they needed. Now the new request is for $50 billion, double to what they already received so they can build more efficient cars. It never seizes to amaze me that for the last 20-30 years we’ve heard that better fuel efficient cars are on the way, but decades later vehicles are still getting roughly the same gas mileage. Foreign automakers have been beating the U.S. makers for many years and are so far ahead of the curve, it will be just short of a miracle if they can ever catch up.
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Nancy Pelosi suggested in an interview before the meeting that any aid to the companies should be tied to making improved fuel efficient vehicles. She suggests? There should be no other way than that. The companies are so behind and have been for some time now that they should scrap most, if not all their current designs and start from scratch.
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Ford said that it continues to invest in smaller, better fuel efficient vehicles, but also stated that except for “few select vehicles that will be deferred until industry volumes recover.” Ford said it will, however, reduce spending for large vehicles in declining segments. Are they out of their minds?
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Who are they trying to fool? In this year alone they’ve bought-out nearly 7000 hourly employees. I know that there will be major lay-offs in the manufacturing side as well. They got themselves into this mess because of bad management and decisions, that they now have more cars than they will possibly sell in the next year or so. With the way the economy is, no one is running out to buy a car and with the condition of the credit crisis, the one that want to can’t even get a loan to do so.
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In my opinion, the quickest way for the big three to get back on track is to stop all manufacturing, get the government’s (our) money, rebuild their plants and start designing the hybrids and engines that can run on natural gas. I know that will never happen though, it’s too drastic of a move. It would many people out of work in Detroit and other areas of the U.S.
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I just wish the stocks were worth more than they are because I would be shorting the hell out of them. Stay away from these stcoks unless you don’t need the money for about 10-15 years.

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