Not all US auto CEO's are idiots

PT1

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I do believe Ford will become the top US auto manufacturer very soon. Their CEO really knows what he is doing and has both a vision AND a plan. Ford slashes debt by $9.9 billion 25 mins ago DETROIT (Reuters) – Ford Motor Co (F.N) has reduced its automotive debt by 38 percent, or $9.9 billion, part of a series of moves to bolster its finances amid the global automotive downturn, the company said on Monday.. The debt reduction will reduce Ford's annual cash interest expense by more than $500 million, it said. Ford, the only U.S. automaker that has not sought emergency U.S. government loans, is using $2.4 billion in cash and 468 million shares of its common stock to reduce its outstanding automotive debt by $9.9 billion from $25.8 billion at the end of 2008. Ford has also reached an agreement with the United Auto Workers union that would slash cash payments for its retiree health care and is powering ahead of domestic rivals General Motors Corp (GM.N) and Chrysler in restructuring to survive the lowest U.S. auto sales in nearly three decades. "By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise," Ford Chief Executive Alan Mulally said in a statement. "As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth," Mulally said. Ford, through its finance arm Ford Motor Credit, used $1 billion in cash to buy back $2.2 billion of debt at 47 cents on the dollar, and $1.1 billion in cash to purchase $3.4 billion of unsecured notes. In addition, $4.3 billion of Ford's 4.25 percent senior convertible notes were tendered by April 3, when a debt restructuring offer closed. Ford will use $344 million to pay a cash premium to noteholders who tendered.
 
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 Originally Posted By: PT1
I do believe Ford will become the top US auto manufacturer very soon. Their CEO really knows what he is doing and has both a vision AND a plan.
He came in with a very good track record, having done a great job at Boeing. In fact, Boeing is hurting a bit now without him.
 

Bill in Utah

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 Originally Posted By: PT1
Ford has also reached an agreement with the United Auto Workers union that would slash cash payments for its retiree health care and is powering ahead of domestic rivals General Motors Corp (GM.N) and Chrysler in restructuring to survive the lowest U.S. auto sales in nearly three decades.
That says it all... GM and Chrysler so far can not get the same mindset out of the UAW.... Good that Ford did not deal with the devil.
 
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It is shocking and amazing how financial responsibility is viewed as rare and ingenious in this day and age. Its a very simple concept to me. Governments and many corporations have lost sight of this very simple principle. Meanwhile, in a stroke of irony, governments warn individuals against accumulating crippling personal debt.
 
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'It is shocking and amazing how financial responsibility is viewed as rare and ingenious in this day and age.' Now if we could just get that idiot child in DC to learn something about fiscal responsibility we might get somewhere !
 

PT1

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 Originally Posted By: Pablo
He's overpaid.
Now that is a shock coming from an Amsoil guy.... What happened to "You get what you pay for"? Besides, Mulally beat Wagoner in the 2 ball test....
 
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PT1

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 Originally Posted By: bruno
'It is shocking and amazing how financial responsibility is viewed as rare and ingenious in this day and age.'
Only because it is......which is sad.
 
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This is what you get when your senior execs stop pandering to Wall Street and the investment community as a whole. Not much the stiffs in NYC can do for you when they've graphically displayed their gross incompetence for the world to see. Now, Ford needs to drop every penny of that $500 million into product development. Not a penny for bonuses, buy outs, bailouts, golden parachutes, dividends or anything else not directly tied to developing new cars and trucks. In other words, run the joint like Toyota does; don't give a dime to anyone who hasn't earned it on the product side.
 
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 Originally Posted By: bretfraz
This is what you get when your senior execs stop pandering to Wall Street and the investment community as a whole.
I hope you know that the CEO works for the shareholders.
 
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 Originally Posted By: CivicFan
 Originally Posted By: bretfraz
This is what you get when your senior execs stop pandering to Wall Street and the investment community as a whole.
I hope you know that the CEO works for the shareholders.
I think what Bretfraz meant, is that this CEO is doing what's best for the shareholders in the long term, not the next quarter...
 
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 Originally Posted By: IndyIan
 Originally Posted By: CivicFan
 Originally Posted By: bretfraz
This is what you get when your senior execs stop pandering to Wall Street and the investment community as a whole.
I hope you know that the CEO works for the shareholders.
I think what Bretfraz meant, is that this CEO is doing what's best for the shareholders in the long term, not the next quarter...
And contrary to what the pop press says, shareholders appreciate this!
 
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 Originally Posted By: PT1
 Originally Posted By: Pablo
He's overpaid.
Now that is a shock coming from an Amsoil guy.... What happened to "You get what you pay for"? Besides, Mulally beat Wagoner in the 2 ball test....
paying too much for something doesn't necessarly get you better. Most CEOs get overpaid for what they do. They make the big bucks profit or loss .The Gm guy ran the compamy into the ground and got a big bonus when he stepped down 20 million at the cost of a bankrupt corp and the taxpayers and there was no big stink by populace.
 

pbm

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I'm glad I bought FORD at $2 a share. Mulally is an top notch CEO and Ford has some excellent products coming. In fact the Fusion Hybrid is already here. I'm gonna make a bold prediction here that Ford will re-pass Toyota and my investment will look very good. PS: I bought some Ford at $7.XX awhile back so I was really just dollar cost averaging at $2. I do believe that Ford gets it.
 
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 Originally Posted By: PT1
I do believe Ford will become the top US auto manufacturer very soon. Their CEO really knows what he is doing and has both a vision AND a plan.
Ford got 23.5 billion dollars worth of credit in 2006. I suppose they haven't spent it all just yet.
 

Win

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Everything Ford owns is mortgaged. Everything. That is not being financially responsible. Hopefully they will survive, but the outcome is still very much in doubt. They are dead man walking just like GM and Chrysler. Ford does have the advantage of having creditors that probably hold out some slim hope of getting some of their money back, evidenced by the discounting of their notes, where GM and Chrysler have a creditor who could pretty much care less about what happens to the money that is already out there.
 
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 Originally Posted By: PT1
I do believe Ford will become the top US auto manufacturer very soon. Their CEO really knows what he is doing and has both a vision AND a plan.
This is not a political post, although somebody might try to make it one. ANYWAY, the current administration says that if any company has to be bailed out, the CEO will get replaced and the replacement will be selected by the government. Okay, with that scenario, if a company gets money given to them more than once, does the puppet CEO that was put in place by the government the FIRST time they get money get replaced when the company has their hand outstretched the second time? Hey, enquiring minds want to know.
 
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