FordBuyer Posted April 24, 2009 Share Posted April 24, 2009 Mulally was on WJR radio this morning in Detroit, and his blockbuster statement in my mind was his saying Ford will increase production 25% in 2nd quarter. That is great news, and I have not read that in any printed report so far. I take the news to mean that Ford in its sales data is seeing increased order from fleet companies and Ford Dealers. Production is key to revenue and Ford must be taking market share from other companies to increase production this significantly. That spells good news for the 2nd quarter at least. Now if Congress could pass some Cash for Clunkers legislation, Ford stock price would probably climb to $10 and then Ford would have to offer far less stock to fund VEBA resulting in more share price climb. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 Cash for Clunkers. Just what we need right now. MORE government spending. :rolleyes: Quote Link to comment Share on other sites More sharing options...
BORG Posted April 24, 2009 Share Posted April 24, 2009 Rather than giving cash for clunkers, they could require vehicles to meet strict emissions and maintenance standards. That would force the clunkers off the road Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 As for the original topic, I have no idea where you heard this 25% mumbo jumbo. Ford said in its Q1 earnings release that it plans to increase production from 425,000 in the first quarter to 435,000 units for Q2, which is down 250,000 units from year-ago totals. That's nowhere near 25%. In fact, that's barely over 2%. At least it's an increase I guess. Quote Link to comment Share on other sites More sharing options...
RangerM Posted April 24, 2009 Share Posted April 24, 2009 Rather than giving cash for clunkers, they could require vehicles to meet strict emissions and maintenance standards. That would force the clunkers off the road Most states already require yearly inspections. You can't force an older car to meet a new emission standard, even though my '93 Ranger would have no problem meeting it. Back to the increased production...... A 25% increase in production of what? Mullaly wouldn't commit to that without some sort of expectation. (or assurances) You don't place a bet like that on a whim. Maybe the resident salesmen (Chiefstang, etc?) have been seeing more traffic lately? Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted April 24, 2009 Share Posted April 24, 2009 It should be "tax deductions for clunkers," but knowing DC today, it will probably be "refundable." Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 As for the original topic, I have no idea where you heard this 25% mumbo jumbo. Ford said in its Q1 earnings release that it plans to increase production from 425,000 in the first quarter to 435,000 units for Q2, which is down 250,000 units from year-ago totals. That's nowhere near 25%. In fact, that's barely over 2%. At least it's an increase I guess. Read my post again...I know what Mulally said this morning in his talk with Paul Smith of WJR. He even accentuated it over and over again. I would imagine the increased production is compared to 4th quarter production numbers, not year ago numbers. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 Read my post again...I know what Mulally said this morning in his talk with Paul Smith of WJR. He even accentuated it over and over again. I would imagine the increased production is compared to 4th quarter production numbers, not year ago numbers. Why would he be using Q4 numbers when Q1 numbers were available already at that time? Comparing Q1 to Q2 is only a 10,000 unit increase. Besides, I think Q1 production was even lower than Q4. He may have said 25% for a specific product or plant. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 Why would he be using Q4 numbers when Q1 numbers were available already at that time? Comparing Q1 to Q2 is only a 10,000 unit increase. Besides, I think Q1 production was even lower than Q4. He may have said 25% for a specific product or plant. Here ya go Nick: An AP article: One day after GM said it would temporarily close 13 North American plants for up to 11 weeks this summer to slash production, Ford said it has increased its second-quarter production forecast to 902,000 units, up 19.5 percent from the first quarter. The increase is due to seasonal adjustments and because of first-quarter production cuts to reduce dealer inventory. North American production is expected to rise 25 percent to 435,000 vehicles.]\ Again, I know what I heard and Mulally restated this on WJR show. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 (edited) Here ya go Nick: An AP article: One day after GM said it would temporarily close 13 North American plants for up to 11 weeks this summer to slash production, Ford said it has increased its second-quarter production forecast to 902,000 units, up 19.5 percent from the first quarter. The increase is due to seasonal adjustments and because of first-quarter production cuts to reduce dealer inventory. North American production is expected to rise 25 percent to 435,000 vehicles.]\ Again, I know what I heard and Mulally restated this on WJR show. Well, either the AP article has its numbers wrong or Ford's earnings release does. I would tend to lean toward the former. Also raises the question again of what they are comparing the rise against. It's obviously not against year-ago or Q1 totals. Edited April 24, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 Well, either the AP article has its numbers wrong or Ford's earnings release does. I would tend to lean toward the former. Don't take this personally, but Mulally is a better source for production numbers than what you infer from what you have read. The AP story says 25% and more importantly Mulally stated this to public. I therefore will take this as fact. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 (edited) Don't take this personally, but Mulally is a better source for production numbers than what you infer from what you have read. The AP story says 25% and more importantly Mulally stated this to public. I therefore will take this as fact. What's to infer from the line "Ford's second quarter production is expected to increase 10,000 units to 435,000."? Hey, if you're right. Great. Good to see the production going up. It just doesn't make much sense to me. Edited April 24, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 What's to infer from the line "Ford's second quarter production is expected to increase 10,000 units to 435,000."? Hey, if you're right. Great. Good to see the production going up. It just doesn't make much sense to me. Mulally's words moments ago on CNBC: Ford CEO Alan Mulally was understandably upbeat when he told me this morning, "We are turning the tide in North America." Things have improved so much in the U.S. Mulally says the company will increase auto production by 25% in the second quarter. Compare that to GM (shutting 15 plants for up to 9 weeks) and Chrysler (preparing for a possible bankruptcy filing next week) and you see why folks are so upbeat at Ford. Now if you are correct Nick and production is only going to rise 2%, you may have a story there and Mulally will have to make a correction. Go for it. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 Mulally's words moments ago on CNBC: Ford CEO Alan Mulally was understandably upbeat when he told me this morning, "We are turning the tide in North America." Things have improved so much in the U.S. Mulally says the company will increase auto production by 25% in the second quarter. Compare that to GM (shutting 15 plants for up to 9 weeks) and Chrysler (preparing for a possible bankruptcy filing next week) and you see why folks are so upbeat at Ford. Now if you are correct Nick and production is only going to rise 2%, you may have a story there and Mulally will have to make a correction. Go for it. Well if 25% is the right number, I have no idea where they got the 10,000 unit increase number from in the earnings release :shrug: Wires are crossed somewhere. Quote Link to comment Share on other sites More sharing options...
probeGT Posted April 24, 2009 Share Posted April 24, 2009 (edited) Cash for Clunkers. Just what we need right now. MORE government spending. :rolleyes: Can you guys EVER resist letting us know you don't like government spending? Why not just make an icon for it over at the left, and then just stamp in down in every single thread to remind us all of how you feel? When I woke up this morning, I just couldn't recall whether Nick was a spineless Socialist. . . oh yeah, thanks for reminding me, now I remember! Edited April 24, 2009 by probeGT Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 Can you guys EVER resist letting us know you don't like government spending? Why not just make an icon for it over at the left, and then just stamp in down in every single thread to remind us all of how you feel? When I woke up this morning, I just couldn't recall whether Nick was a spineless Socialist. . . oh yeah, thanks for reminding me, now I remember! No, I can't resist. And you're welcome. :D Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 24, 2009 Share Posted April 24, 2009 Could it be, segmentwise, CAR production up 25%? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted April 24, 2009 Share Posted April 24, 2009 Nah, even that doesn't make any sense. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 Can you guys EVER resist letting us know you don't like government spending? Why not just make an icon for it over at the left, and then just stamp in down in every single thread to remind us all of how you feel? When I woke up this morning, I just couldn't recall whether Nick was a spineless Socialist. . . oh yeah, thanks for reminding me, now I remember! I would say that it's better for Washington to stimulate demand than just watch auto sales flounder and instead give GM and Chrysler billions to stay afloat. German auto sales rose over 20% after they institututed this progam. You would think that by now Republicans would learn that just cutting spending and taxes are not effective when the private sector is tapped out. When no one is spending money, only the government remains, and if they don't, then everyone is screwed, even those who live in parallel universes. Quote Link to comment Share on other sites More sharing options...
Critic Posted April 24, 2009 Share Posted April 24, 2009 Consider your one month into a three month quarter. No real production increases have been seen in any model or plants, it gives rise to what intern said, well *** is going to increase 25% vs. xxx and Al seizes that for every drop of positive news he can spread across the media channels. I'd say he has caught onto the Autobiz very well in just 2 years nnow! Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 (edited) I would say that it's better for Washington to stimulate demand than just watch auto sales flounder and instead give GM and Chrysler billions to stay afloat. German auto sales rose over 20% after they institututed this progam. You would think that by now Republicans would learn that just cutting spending and taxes are not effective when the private sector is tapped out. When no one is spending money, only the government remains, and if they don't, then everyone is screwed, even those who live in parallel universes. If I had to spend less in taxes, I'd have more to spend on a new car, no? Instead, you want a larger government that requires more tax revenue to operate. I will then need to spend more on taxes. Since my current daily driver probably isn't old enough to qualify for any sort of "clunker" program, I'd be left with even less to buy a new car. Hmmm. Anywho...that's way off topic. If the 25% is correct after all, my apologies, and also bravo to Ford! Edited April 24, 2009 by NickF1011 Quote Link to comment Share on other sites More sharing options...
Pioneer Posted April 24, 2009 Share Posted April 24, 2009 Just what we need right now. MORE government spending. :rolleyes: Don't you work for a company that holds government contracts? Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted April 24, 2009 Author Share Posted April 24, 2009 Alan Mulally has to the most positive, optimistic guy in America right now. He is always so upbeat and most of time sounds like Ford commercial. His meetings must be full of smiley faces and would make a cheerleader look depressed in comparison. :happy feet: Quote Link to comment Share on other sites More sharing options...
soupy Posted April 24, 2009 Share Posted April 24, 2009 Mulally interview to be on CNBC at 12:10 ET. Let's check it out. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted April 24, 2009 Share Posted April 24, 2009 Don't you work for a company that holds government contracts? Yeah, it's a slippery slope I climb sometimes. :lol: Quote Link to comment Share on other sites More sharing options...
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