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Fiat beats Ford....


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Thank you US Government orchestrated bankruptcy "court"

 

Fiat Chrysler is more efficient and less indebted than Ford.

 

And then there is this, which has ZERO bearing on the quality of the company..

 

Wall Street has also been paying close attention to Fiat Chrysler’s efforts to spin-off its Maserati, Alfa Romeo, and Jeep brands, which could further unleash shareholder value.

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This is my favorite quote. "Then theres Fiat Chryslers broad portfolio of fast-selling SUVs and sporty premium marques such as Alfa Romeo and Maseratimonthly sales of Alfa Romeos and Jeeps have roughly doubled since 2014."

 

Nevermind they are/were looking for a partner and that jeep and ram are about the only thing holding up NA sales. I find this article BS.

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The article mentions Ford's heavy debt load...I hope they're not counting all the consumer debt in Ford Credit.

All of that debt is covered by payments from customers and cars as collateral.

 

and I'd be very surprised if FCA has more cash and cash equivalents than Ford.

Edited by jpd80
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Many analysts and investors are concerned about the high interest rates on some of Ford & Ford Credit debt securities.

 

Many analysts and investors are idiots. They have $28B in the bank against $16B debt and they're making $2B/qtr. If the interest rates were a problem they would have paid them off.

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Many analysts and investors are idiots. They have $28B in the bank against $16B debt and they're making $2B/qtr. If the interest rates were a problem they would have paid them off.

I also would assume some of those debts are held by members of the Ford family as higher yield fixed return investments.

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While Ford execs and the Ford family would be concerned about stock prices

it would be far less than the critical eye of investors considering Ford stock,

most of it having been traded for decades with no actual benefit to Ford Motor

 

The majority of Ford Credit is to customers and is returning revenue of around

&500 million a quarter, all indexed against inflation and secured by customers cars

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Their margins are likely to continue to go up now they got rid of cars and only (mostly) sell high-profit SUVs and trucks.

 

Pro: Funny thing about FCA is they basically had to get rid of their cars out of a desperation move and unknowingly were ahead of the curve.

Con: They were unknowingly ahead of the curve. They still really have no idea what they are doing.

 

They are woefully unprepared for whatever the future brings.

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Their margins are likely to continue to go up now they got rid of cars and only (mostly) sell high-profit SUVs and trucks.

 

Pro: Funny thing about FCA is they basically had to get rid of their cars out of a desperation move and unknowingly were ahead of the curve.

Con: They were unknowingly ahead of the curve. They still really have no idea what they are doing.

 

They are woefully unprepared for whatever the future brings.

 

 

Aka dumb luck

 

They may be "fine" for the next product cycle or so, but if gas spikes back up to $4 gallon they might be in trouble.

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Will gas prices drive people to cars or more efficient CUVs? I drive a fair amount (15-20k/Year) and can't imagine any gas price that would cause me to consider a sedan. Escape over Edge? Maybe.

 

The problem is that once you go from 15 MPG to 25 MPG to say 30 MPG, your not going to see a huge saving in gas.

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