The really bad news is that delinquencies are ticking up for car loans. As the economy continues to suck, as layoffs continue to happen all over the place, people can no longer afford their average $700/month car payments. As those go up Ford's cash to debt ratio will continue to go down.
I believe that this right here will cost us many jobs. Not many people think about this when thinking about the prolonged economic crisis.
The reason auto loan defaults has not happened yet is because most people had equity in their houses and did refinance/cash out to pay some or all their loan payments. In addition, there has been numerous programs to help people defer their payments.
Now, the American consumer lives off credit/interest and with continued inflation the auto delinquencies will start to pick up rather quickly.
The problem is the company doesn’t have a back up plan to address this. Our CFO came out and said up until a week or so ago that they never considered an economic recession to affect the company. How absurd is that? We all know a recession is coming.
If the company isn’t addressing this potential crisis we are about to experience than add that to the already growing list of failures this company has achieved
transloc sold for pennies to modaxo, with only 50,000 downloads thats a huge failure
How well could you trust any of this info. Some of the companies they list as "massive failures" were actually sold to other technology companies (TransLoc) and are thriving. But, wait, I saw it on the internet so it must be true.
The reality is sadder...
The troll down below commented that people are not defaulting in their loans. In the past, this was true - and auto loan lenders very publicly stated that people would sooner stop making rent / mortgage payments than risk losing their car because they need it to commute to work.
These lenders know what they're doing and do not care. They would consider it a victory if a car buyer lost their home and had to live in their car - because at least the lender would still be collecting from them...
Let's Go Farley ! C'mon - ya know the truth - Gimmie a chant with rant !: "Let's Go Fordy" !
Ford Design leaders need to be terminated, the EV Explorer unveiled is an embarassment. A poor copy of a Volvo meets Nissan with an uninspired interior. Who is making these awful decisions allowing this garbage to be produced?! If this is the EV future, we have a serious problem is right. What a mess.
@rbo+1lQTn4eC. It is probably too late.
Farley has failed. Investors have no confidence in the so-called ' Transformation ". The plan is not clear and the outsiders brought in have failed to deliver. Shareholders are demanding accountability. An internal memo highlights the failures of each segment, especially the inability of Model E to deliver affordable, desirable and profitable vehicles and the enormous resource drain of Next without a clear roadmap to profits. Autonomic, FSM, MCS, Spin, AV/ Argo, TransLoc are massive failures that Lawler has creatively distracted investors through the layoffs and offshoring engineering. Morale is low, nepotism continues and the best talent is well aware of Ford's questionable practices. The EU electric Explorer is being ridiculed. With no interest in the vehicle, once again shareholders are demanding accountability and termination of leadership. The are many real problems, but topping the list are the Ford family's inability to choose an effective CEO. Elena, Alexandra are ineffective. Elena's failures are endless, she and Farley have no place in this business. Eliminate them and a dozen others, Louis Victor, Field, Musgraves, Lo, another endless list of fakes, and there will finally be positive transformation.
I applaud the trolls on this site for creative spin and fear mongering.
Google Ford Credit comments from the past couple of weeks saying they are not seeing increased deliquescencies even though interest rates have pushed payments higher.