FORD BETS THE HOUSE

[6 Shooter]

Tuesday, November 28, 2006
http://vh10924.moc.gbahn.net/apps/pbcsi.dll/bilde?Avis=C3&Dato=20061128&Kategori=AUTO01&Lopenr=611280378&Ref=ARQ=100&noborder (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061128/AUTO01/611280378/1148)

It puts assets on line to secure $18B in financing
Bryce G. Hoffman / The Detroit News

Ford Motor Co. is going all in on a bet-the-company financing strategy that will put virtually all of its U.S. assets -- including factories, office buildings and technology -- up as collateral in a multibillion-dollar credit deal designed to buy time to execute a North American restructuring.

The struggling automaker hopes to obtain $18 billion in financing to fund its turnaround and shore up its liquidity as protection against unanticipated events, such as a recession, the company said in a statement Monday.

The financing will include up to $15 billion in secured loans, which will be backed by most of Ford's domestic assets, as well as all or part of the stock it owns in subsidiaries such as Ford Motor Credit Co. and Volvo.

This is the first time Ford has put its assets up as collateral. Doing so gives it access to much-needed funding, but also translates into a big increase in debt-servicing costs. More critically, the company's future is on the line if it fails to execute a turnaround.

"This is Ford's one last shot to get it right," said Wall Street analyst John Casesa of the Casesa Shapiro Group LLC. "If the restructuring plan is not executed flawlessly, the company will lose its independence. Management is staking the entire future of the company on successfully executing this plan."

Full Story... (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061128/AUTO01/611280378/1148)

[B17Crew]

Man, they have brass OO’s.

B17Crew
:w

[Eric]

I think they probably saw the writing on the wall. With GM's efforts finally showing a bit of promise, they had to make a move and a bold one at that.

As much as I dislike them, I wouldn't want to see them dodo'd for the sake of competition and the country.

- Eric:w

[Brett]

I guess they took their own advice----Bold Moves.:L

[6 Shooter]

MASS EXIT: 38,000 blue-collar workers apply to leave | SAVINGS: Stunning exodus could fuel comeback
FUTURE: Temporary workers will step in

Ford Motor Co. announced today that about 38,000 hourly production workers -- almost half of the automaker's U.S. factory work force -- have accepted buyouts or early retirement offers.

The figure includes approximately 30,000 buyouts during the open enrollment period that concluded late Monday, plus about 8,000 who took deals offered at limited plants earlier this year.

Faced with lower demand for its products, Ford had hoped that 25,000 to 30,000 workers would take one of eight packages so it could reduce manufacturing capacity to better match demand.

The figure exceeds the company's goal of cutting 30,000 hourly positions by 2008 and should provide a major boost to Ford's effort to slash costs and return to profitability by 2009.

Full Story (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061129/AUTO01/611290416/1148)

[Ezmunie]

MASS EXIT: 38,000 blue-collar workers apply to leave | SAVINGS: Stunning exodus could fuel comeback
FUTURE: Temporary workers will step in

Ford Motor Co. announced today that about 38,000 hourly production workers -- almost half of the automaker's U.S. factory work force -- have accepted buyouts or early retirement offers.

The figure includes approximately 30,000 buyouts during the open enrollment period that concluded late Monday, plus about 8,000 who took deals offered at limited plants earlier this year.

Faced with lower demand for its products, Ford had hoped that 25,000 to 30,000 workers would take one of eight packages so it could reduce manufacturing capacity to better match demand.

The figure exceeds the company's goal of cutting 30,000 hourly positions by 2008 and should provide a major boost to Ford's effort to slash costs and return to profitability by 2009.

Full Story (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061129/AUTO01/611290416/1148)

Another good reason to buy a Ford.:eyerole ...they'll be building their cars with half of a workforce that are untrained temps:D I'm sure quality will still be job 1:ugh

[grapeknutz]

MASS EXIT: 38,000 blue-collar workers apply to leave | SAVINGS: Stunning exodus could fuel comeback
FUTURE: Temporary workers will step in

Ford Motor Co. announced today that about 38,000 hourly production workers -- almost half of the automaker's U.S. factory work force -- have accepted buyouts or early retirement offers.

The figure includes approximately 30,000 buyouts during the open enrollment period that concluded late Monday, plus about 8,000 who took deals offered at limited plants earlier this year.

Faced with lower demand for its products, Ford had hoped that 25,000 to 30,000 workers would take one of eight packages so it could reduce manufacturing capacity to better match demand.

The figure exceeds the company's goal of cutting 30,000 hourly positions by 2008 and should provide a major boost to Ford's effort to slash costs and return to profitability by 2009.

Full Story (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061129/AUTO01/611290416/1148)


http://a.sc.msn.com/P~/[+S]J20,G3%60GZ2FZF8SSC.gif

[Dirtfarmer]

http://a.sc.msn.com/P~/[+S]J20,G3%60GZ2FZF8SSC.gif

Hilarious! ;LOL