Umm
Ford borrowd 28 billion last year and had over 50 billion in prior debt. Basically 78 billion in liabilites it has to pay back. It is also getting no deal on its retiress and VEBA.
I think GM has 172 billion in liabilites and 90 billion in cash assets.
Chrysler had 6.9 bilion debt and 2.7 billion cash and assets but now that the debt is exchanged and they receive 4 billion form the Feds they will be in good shape going forward from that perspective. Basically pay the 4 billion back to the goverment and the retirees own 55% of the company.
I would assume GM will be much better to. Maybe 30 billion they will need to pay back versus 90 billion in the hole.
So both wont have the huge amounts of debt they have to serivce and eventually pay back but FOrd will have to pay back that 78 billion and service the debt on it. The media idiots seem to forget that part of the equation.
Originally Posted By: NHHEMI
Ford will be fine as they are on solid financial ground still with a good lineup. With the recession( depression ) easing and sales starting to rise a little they should be fine. Only if things collapse again( and they most likely will if gas hits $4+ again )will they be in for it but ALL auto mfg's will.
GM and Chrysler will also come out of this leaner and meaner and in better shape to survive. Their future, like all auto mfg's, rests on the economy. GM has plans for some new more economical cars to compliment their larger vehicles and SUV's/trucks and Chrysler now has access to Fiat's smaller economy class vehicles to compliment their larger cars, SUV's, and the Ram.
People need to wake up and realize that the Big 3 make some great vehicles. It is not 1979-1985. Very good vehicles offered from all of them( a few turds yes but not all ). Time to stop supporting all these foreign companies who do NOT make better vehicles. This is the USA. It is not Japan and Korea so why support those country's businesses? Support your own darn country's businesses.
I actually support the government aid to the US auto companies. At least it is actually supporting US companies and workers, and not more greedy Wall Street exec's and brokerage agencies/companies that got us into this mess and are using the money for corporate parties and bonuses. Also, part or all of the loans to the auto industry "will" be paid back. Just as Chrysler did previously GM and Chrysler will pay abck what they borrowed if we support them and buy their vehicles. They make good ones so no need not to.