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It's that time again
#1

POP!

https://www.zerohedge.com/markets/fords-...t-now-ever

...goes the bubble. Enjoy your even more cheapened model year 2020+ Ford trucks and SUVs.
88 TC in Canyon Red
Walbro 255, AEM wideband, CP Pistons, FMIC, PIMP, SVO T3, Ranger roller, 3" Stinger exhaust, AFPR, RFL BOV, Gutted upper, Ported lower
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#2

(02-10-2020, 05:30 AM)ThunderFaux Wrote:  POP!

https://www.zerohedge.com/markets/fords-...t-now-ever

...goes the bubble. Enjoy your even more cheapened model year 2020+ Ford trucks and SUVs.
 
Could someone (Zane or ????) please explain the meaning of this post? How does the increased profits of Ford credit have anything at all to do with......."cheapened 2020+ cars or trucks"?  

Also......why is this in "General Tech"? [Image: confused0024.gif]
Placerville, California
(former)  2.3T '78 Courier ~ (current)  2.3T '87 Ranger & '82 Mazda B2200 (smog-exempt diseasel truck)
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#3

Well, did you read the article Ray?

Ford motors is essentially a zombie corp at the point. They are loaning themselves money to stay afloat.
88 TC in Canyon Red
Walbro 255, AEM wideband, CP Pistons, FMIC, PIMP, SVO T3, Ranger roller, 3" Stinger exhaust, AFPR, RFL BOV, Gutted upper, Ported lower
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#4

(02-17-2020, 01:14 PM)ThunderFaux Wrote:  Well, did you read the article Ray?

Ford motors is essentially a zombie corp at the point. They are loaning themselves money to stay afloat.

I can't say that I read every single word, Zane.....but, I skimmed thru it pretty well. I'm no financial genius (not even close), but I can't imagine any kinda monetary gain from "loaning money to oneself". That seems a little counter-intuitive, and ~ AFAIK ~ usually winds up being referred to as a pyramid scheme  (think, "Bernie Madoff") that ultimately results in total meltdown.  

OTOH, the point I took away was that there's currently a "lull/depression" in vehicle sales across all auto makers (as per usual...some probably more than others) and that the profits from their "credit arm" (interest income generated from loans made to both consumers and franchised dealers) is what was helping to "keep Ford afloat". [Image: confused0024.gif]
Placerville, California
(former)  2.3T '78 Courier ~ (current)  2.3T '87 Ranger & '82 Mazda B2200 (smog-exempt diseasel truck)
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#5

This is nothing new, for several decades now, the auto companies have found it more profitable (per car) to finance a vehicle sale than the profit from the actual manufacture of the vehicle. When I was at Ford, Ford Motor Credit was doing far better on per vehicle profit than Ford 'the car builder'.

I also don't know that I'd call it "loaning money" from one division in a company to another, corporations have been pulling this trick for years. It's not unusual, nor illegal, to shift profits from one division to another, insurance companies do this all the time.

Underwriting auto insurance is generally very profitable, but insurance companies can have bad years in other property and casualty divisions when there's a big natural disaster and the home underwriting division suffers a loss. So they move profits from the auto underwriting division to the homeowner's division, so now auto looks unprofitable, and they go to your state insurance commissioner and request to raise auto policy rates to cover the "losses". Don't laugh, this has happened.
2019 Corvette Grand Sport, 1LE
2008 Mercury Milan Premier
1999 SVT Contour
1989 Taurus SHO
1985 Mustang SVO
Must thin the herd...
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