If this is actually true....can someone...anyone.... please...honestly..... tell me.....is.... Ford.....PURPOSELY trying .....to end their existence?

http://money.cnn.com/news/newsfeeds/...3_FORTUNE5.htm

It's as if Toyota people saw that old "B" rated horror movie "Invasion of the Body Snatchers", and left "pods" in the office of every top Ford executive!

 

I think they more or less HAVE to sell those brands to come up with the operating cash they need to finance the Ford turnaround plan.

 

The gist of any information I've seen in this vein is that in order to make most of (or what's left now that AM is gone) the PAG brands attractive to any prospective buyer, Volvo may likely have to be part of the deal - bad for Ford good for a potential buyer.

That reality puts Ford between a rock and a hard place....

 

It's a shame to get rid of PAG after all that Ford has invested in them - but if the Ford/Mercury/Lincoln brands don't become more profitable - none of that PAG stuff will matter much.


Also, wouldn't it be ironic if Fiat bought Jag and Rover with the cash that GM GAVE them?

 

Well, we know that Ford basically put the entire company up as collateral to get the cash it needs to develop products for the turnaround. Perhaps they feel they better help cushion the blow should things not go as they would like/hope/need.

I absolutely think Ford needs to concentrate on its core business/division, namely Ford....and hey, they've already risked everything to this point, what's a few fringe luxury divisions?

 

Great point.

 

I think someone else mentioned this, but really aren't there only two solid reasons they'd do this?

1.) they need the cash NOW for a product blitz never seen before (maybe better than the '80s T-bird and Taurus revolution)

2.) they need the cash as a contigency to survive a huge UAW strike if/when talks break down.

 

I vote for number 2.

And I don't think it will be a European firm that ends up with PAG. I think either China or Chrysler.

 

Maybe Camaro people will indeed have the last laugh when Ford goes out of business and Mustang disappears.

 

I certainly wouldn't be "laughing" in that scenario.

 

Hmmm...buckle your seatbelts, it could be an interesting ride.

 

Nor would I, but the prospect of them going under seems all the more likely each day with some of the decisions they are making.

 

In some ways, F is in better shape than GM right now. (How's GM's long-term debt position looking?)

Getting rid of PAG may just come down to cutting loose a less profitable line of business in order to focus on the core franchise, which would be straight out of the Corporate Turnarounds 101 playbook. I don't know what the margins are on Volvos; with exchange rates where they are, it's possible that they're not very good. Certainly Jag and LR aren't exactly generating rivers of cash, to say the least. Aston was profitable but a distraction; putting it in Prodrive's hands was a good resolution for all concerned.

 

as far as ive heard, there are no plans to sell volvo, only jag and rover, and why not, its not like they make any profit from them anyway. theyre more of a burden than a help anyhow

 

Probably both, but lets take best case scenario... The union folds Ford's cost are instantly no more than Toyota's... Meaning they spend the cash on new products...

You're still left with a three brands that are extremely shaky.

Even if Lincoln pulls an unprecedented turnaround they still have to wait on people to jump ship from Acura/Infiniti, and thats gonna be a while. Then they run into the issue Cadillac is having now, where their loyal customer base can't afford their great new products...

When was the last time Mercury was even relevant? Even if it did get a product boost its going to overlap with Mazda and probably, even a rejuvenated Lincoln...