Ford Going Private?

[MM2004]

Detroit Free Press today,..

Ford Motor is considering taking the company private, a move that could give the ailing automaker time to restructure operations outside the glare of critics, a source with direct knowledge of the discussions said Wednesday.

"The family is willing to look at anything," said the person, who didn't want to be identified because the discussions are ongoing. "A lot of different scenarios are being gamed out."

With Ford's shares closing at an anemic $7.76, going private could cost interested parties as little as $13.34 billion.

The Ford family owns about 5% of Ford's outstanding shares. The family controls 40% of the company through a separate class of stock. The automaker had no comment.

Plummeting pickup sales have derailed Ford's current restructuring plan, laid out last January, and the automaker plans to unveil an accelerated version in September. Through the first half of the year, Ford has lost $1.4 billion.

Top executives have said they are looking at every option available to turn Ford around, including selling off troubled brands such as Jaguar, entering into partnerships with other automakers, slashing its workforce and closing more plants. The company recently hired former Goldman Sachs banker Kenneth Leet to help it explore its options.

"The biggest benefit to taking it private is just not having to answer to all the external stakeholders they have to answer to today," said Kevin Reale, an analyst with AMR Research.

Nearly 600 banks or investment firms own shares in Ford, according to Thomson Financial, and 790 mutual funds also have a stake in the automaker. Sixteen analysts cover Ford, issuing reports to investors when news breaks.

CEO Bill Ford has been criticized for several incidents since taking the job in October 2001. In 2002, he said the automaker would make $7 billion in pretax income in 2006. In April 2005, three weeks after saying it would still meet its goals, it revoked its earnings guidance and said it would no longer meet the $7 billion target, shaking investor confidence.

Ford's shares have traded between $6.06 and $10.20 in the past 52 weeks, giving it a market capitalization of $14.5 billion, a quarter of smaller rival DaimlerChrysler's market cap.

"The assets are tremendously undervalued," said David Cole of the Center for Automotive Research. A private equity firm could be eyeing a future share price of $20 to $40, he said.

[Meteorite]

I think this would be a great thing. As Cole states, the market cap of Ford is ridiculously low!

This would give Ford a chance to operate without regard to what Wall Street says, to a great degree.

I think it would be a stabilizing influence.

[Breadfan]

Detroit Free Press today,..

Top executives have said they are looking at every option available to turn Ford around, including selling off troubled brands such as Jaguar, entering into partnerships with other automakers, slashing its workforce and closing more plants. The company recently hired former Goldman Sachs banker Kenneth Leet to help it explore its options.
"Top executives then conceded that they did not listen to Breadfan, thought he was insane, and had no intention of designing, marketing, and selling cars that people actually wanted to buy.

They then stated that creating cars people will buy is not the answer to increased revenue, but did indicate they see a gold mine in creating commercials that emphasize that marriage problems and divorce are easier to deal with in a Freestyle."

[rocknrod]

"Top executives then conceded that they did not listen to Breadfan, thought he was insane, and had no intention of designing, marketing, and selling cars that people actually wanted to buy.

They then stated that creating cars people will buy is not the answer to increased revenue, but did indicate they see a gold mine in creating commercials that emphasize that marriage problems and divorce are easier to deal with in a Freestyle."

Thats funny rat there:D

[RF Overlord]

I'm certainly no financial whiz-bang, but it seems to me that many (if not most) of the problems with big companies are caused by "Wall Street". Investors are only interested in short-term gains, and enormous ones at that, and this can KILL a company. Taking Ford (or any company that can afford it) private seems like a damn good idea to me...screw Wall Street.

Note the following acronyms apply here:

1. "IMHO"
2. "IHNIWT*ITA" ("I Have No Idea What The * I'm Talking About")
3. "YMMV"

[marauder307]

Here's a novel solution: fire everybody in the company who's last name is "Ford".

The corporate inbreeding has gotten utterly out of hand at Ford. Now we've got some numbnuts named "Elena" running around the joint trying to make decisions on how to run a company. Leaving the decisionmaking process up to your pet teacup Chihuahua isn't working too well...how about let some of us who know what we're doing give it a try? (said with tongue only half in cheek)

[bryanthomas]

"Top executives then conceded that they did not listen to Breadfan, thought he was insane, and had no intention of designing, marketing, and selling cars that people actually wanted to buy.

They then stated that creating cars people will buy is not the answer to increased revenue, but did indicate they see a gold mine in creating commercials that emphasize that marriage problems and divorce are easier to deal with in a Freestyle."


:D Now that is funny!!

[Bluerauder]

"... marriage problems and divorce are easier to deal with in a Freestyle."
I have no specific comment on that observation ..... :rofl:

http://www.mercurymarauder.net/showcase/files/1/8/9/1/Freestyle2.JPG

[Bigdogjim]

Nothing will work untill you make a car people want to buy!

I think Bill should step down and get a real "car guy" in there.

Yes it is that simple.

[RF Overlord]

...fire everybody in the company who's last name is "Ford".

The corporate inbreeding has gotten utterly out of hand at Ford. Now we've got some numbnuts named "Elena" running around the joint trying to make decisions on how to run a company.

Amen to both statements, bruh... :up:

[SergntMac]

"Truck sales"...The numbers are down...

So...What did you expect after selling a pick-up to every working household in the country for the last five years? Have to run out of customers sooner or later, eh?

[RCSignals]

It wouldn't the first time FMC 'went back' to being Private.
Some think the road to trouble beagan when it went Public in, what was it, 1956?

[Joe Walsh]

......................:laugh:. ....................... :laugh:...................... :laugh:



"Top executives then conceded that they did not listen to Breadfan, thought he was insane, and had no intention of designing, marketing, and selling cars that people actually wanted to buy.

They then stated that creating cars people will buy is not the answer to increased revenue, but did indicate they see a gold mine in creating commercials that emphasize that marriage problems and divorce are easier to deal with in a Freestyle."


I just saw that commercial for the first time last week.

I really wasn't paying close attention to the commercial because almost all of FORD's recent ads have sucked.

At the end when they dropped of Daddy, I did a double take and said out loud: "WTF????"


What's next: Melissa Etheridge and Ellen Degeneris going on a picnic in a Freestyle?? ("We like the Continously Variable Transmission because it eliminates the stick shift.")

Or maybe Lance Bass shilling Montegos??

[VNMUS]

What's next: Melissa Etheridge and Ellen Degeneris going on a picnic in a Freestyle?? ("We like the Continously Variable Transmission because it eliminate the stick shift.")
Now that's funny stuff, right there! :laugh:

[O's Fan Rich]

A


What's next: Melissa Etheridge and Ellen Degeneris going on a picnic in a Freestyle?? ("We like the Continously Variable Transmission because it eliminates the stick shift.")


I don't get it.......:whistle:




Oh wait... no :cuke: :cuke: allowed!

[O's Fan Rich]

Actually what I find funny is the waqy they produce a car people will buy then don't ramp up production of that car so as to sell as many as possible before the competition kicks in and grabs market share.
Camaro and Firebird out, Mustang still in... but wait!! We should not take advantage of that... that would not be sporting.
Butt heads....

[chrish]

Nothing will work untill you make a car people want to buy!

I think Bill should step down and get a real "car guy" in there.

Yes it is that simple.

what ever happened to the previous MAIN man..cant remember his name.? His leadership brought the marauder & other great cars.

[Joe Walsh]

I don't get it.......:whistle:




Oh wait... no :cuke: :cuke: allowed!

Kinda like the joke:

"Did you hear about the two lesbians that wanted to build their own house?

They didn't want to use any screws or studs, so they did the whole thing tongue and groove!"

[RCSignals]

what ever happened to the previous MAIN man..cant remember his name.? His leadership brought the marauder & other great cars.

You mean Nasser? He had nothing to do with the (our) Marauder.

or are you thinking years farther back? If so that would be Henry Ford 2 , and he's dead.

[STLR FN]

what ever happened to the previous MAIN man..cant remember his name.? His leadership brought the marauder & other great cars.I do belive that would be Phil Martens and he's been.....uhhhhh...... "retired". Steve Bacock was the program director IIRC of the Marauder.

[TooManyFords]

Kinda like the joke:

"Did you hear about the two lesbians that wanted to build their own house?

They didn't want to use any screws or studs, so they did the whole thing tongue and groove!"

Said the one lesbian turtle to the other lesbian turtle, "You know? We DO taste like chicken!"

:laugh:

John

[Breadfan]

I have no specific comment on that observation ..... :rofl:

http://www.mercurymarauder.net/showcase/files/1/8/9/1/Freestyle2.JPG

I was wondering what you thought about that commercial. :)

[rocknrod]

If Ford would build a car people liked, I think they'd build this. Remember when it was shown all over town? Nope can't build that, people liked it too much:
http://www.motoswiat.pl/dzialy/galeria/Ford/49/ford_49_01_800x600.jpg

[Macon Marauder]

I've read more than once that Bill Ford is a reluctant leader. He's tried to recruit at least 2 well-known auto biz leaders. The bottom line is that no one good is interested. Ford is a tough gig for execs because the family still runs the company.

It's sad, but bankruptcy and/or a merger are probably in Ford's future.

But GM and DMX (or whatever) are hardly any better off these days.