Trump Should Be Asking: Will Ford Pay Off Its Government Loan Before Moving Small Car Production To Mexico? (2024)

FAQs

Did Ford ask for bailout money? ›

Though GM and Chrysler eventually did get a bailout — Ford did not need help because it had fortuitously secured a large amount of financing shortly before the crisis — it was not all sweetness and light.

In September 2009, Ford entered into an agreement with the Department of Energy and borrowed $5.9 billion as part of a loan program created to finance automotive projects designed to help vehicles built in the U.S. meet higher mileage requirements and lessen U.S. dependence on foreign oil.

Ford Motor owes the government $5.9 billion it borrowed in June 2009, the same month GM filed for bankruptcy. By Sept. 15, Ford needs to start paying that money back. In a government filing, the carmaker said $577 million is due within the next year, and the full amount must be paid off by June 15, 2022.

Ford applied for and received $5.9 billion in June 2009 (the same month GM filed for bankruptcy) to help pay for investments in more fuel-efficient engines, hybrids and electric cars and also to convert two truck plants to production of cars.

This is further underlined on further inspection of the companies' Revenue Growth Rates [YoY]: while GM's is 23.41%, Ford's is 15.93%. Ford's Total Debt to Equity Ratio of 325.42% is significantly higher than GM's (160.36%), which serves as an indicator that Ford is the higher risk investment of the two companies.

Ford Motor long term debt for 2022 was $88.805B, a 0.46% increase from 2021.

Cash flow from operations declined by nearly $9 billion in 2022, driven by an increase in Ford Credit receivables and inventory growth. Working capital burned so much of Ford's cash that it ended up with $0 free cash flow for the year, compared to $9.5 billion a year ago.

Ford is an automotive company that sells cars, trucks, and sports utility vehicles. It also provides vehicle service and financing. The vast majority of the company's revenue comes from automotive sales. Mobility is the smallest operating segment by revenue, but also the fastest-growing.

What Is Ford Motor's Net Debt? The chart below, which you can click on for greater detail, shows that Ford Motor had US$138.4b in debt in December 2022; about the same as the year before. However, it also had US$32.2b in cash, and so its net debt is US$106.2b.

Ford did not ask for a government bailout, but received other financial assistance. Ford supported the GM and Chrysler bailouts to protect its supply chain and dealer network.

Who does the government owe the most money to? ›

Investors in Japan and China hold significant shares of U.S. public debt. Together, as of September 2022, they accounted for nearly $2 trillion, or about 8 percent of DHBP. While China's holdings of U.S. debt have declined over the past decade, Japan has slightly increased their purchases of U.S. Treasury securities.

The US government owes trillions of dollars in debt to foreign entities, including governments, central banks, companies, and individual investors.

We've all heard of his name—the great automobile innovator and entrepreneur, Henry Ford. What a lot of people don't know is that before he became famous for his automobile and $5 workday, Henry Ford was a debtor who filed bankruptcy twice. Henry Ford began his career as a machinist, then an engineer.

Ford under Mulally worked hard to avoid bankruptcy, cutting costs, diversifying its products and above all securing $23.6 billion in financing before the credit markets froze up in 2008, Hoffman writes. All of that tells a story of making your own luck.

When you think of Henry Ford, you probably think about the Model T or the Ford Motor Company. What you may not know is that he found himself in financial trouble several times. In fact, he filed for bankruptcy twice.

Ford: Recent Performances. GM is a smaller company than Ford. GM's total revenue for 2020 was $122 billion, a 10.75% decrease from the previous year. Ford's total revenue was $127 billion, an 18.45% decrease from the previous year.

While traditional automakers have relied on massive debts to produce and sell their capital-intensive products in their 100-year histories, Tesla's business model has found it with high levels of cash flow and unprecedently low debt for the industry.

The headline figure from the earnings report is that the legacy car maker is losing an average of $58,333 per electric vehicle sold in the first three months of 2023. Ford only delivered 12,000 EVs for the first quarter, and in turn, Ford Model e lost $700 million (before interest and taxes) in the same period.

He owed money to Eastern bankers, sales were plummeting and Ford Motor Company was losing twenty dollars on each car produced. This crisis inspired a key element of Lean Manufacturing, paid off the debt and enabled Ford to survive the recession.

Is Ford on a decline? ›

The Detroit automaker sold 1.86 million vehicles in 2022, down from 1.91 million in 2021. Ford Motor Co. reported U.S. sales declined 2% in 2022.

Ford Motor was downgraded to “junk” status, or below investment-grade, in 2020 as the COVID-19 pandemic unfolded, which spurred temporary halts to U.S. auto manufacturing, chip shortages and months of record-high used-car prices. S&P Global currently rates the company BB+, and Moody's rates it at Ba2.

Ford Investment Opportunity

Ford Motor has a volatility of 2.2 and is 2.82 times more volatile than NYSE Composite. 19 of all equities and portfolios are less risky than Ford.

At about two million units, the U.S. is the number one sales market for the Ford Motor Company. Globally, sales grew by about 289,000 units between 2021 and 2022.

Galpin Ford was named the number one volume Ford dealer in the world for a record 25th consecutive year, according to Ford Motor Company sales data.

Ford hit with $1.7 billion verdict for F-series pickup roof collapse that killed couple. The family of an elderly couple killed when the roof of their F-250 pickup collapsed during a rollover accident in 2014 has been awarded a massive $1.7 billion in punitive damages from Ford.

Today easily 90% of the trucks are gone with more trailers on the lot being loaded." This process looks like it began sometime after Dec. 21, 2022. Satellite photos from that date show a handful of lots packed to the brim with to-be-delivered pickups.

The legacy carmaker has, for the first time, published its results, distinguishing the activities of electric vehicles from those of gasoline cars.

Ford Motor Chair Bill Ford has been slowly amassing more control of the automaker his great-grandfather founded in 1903. He is the company's biggest individual shareholder with 2.3 million shares of the Ford's common stock. More importantly, he directly owns 16.1 million, or 23%, of the Class B shares.

Did Henry Ford get government money? ›

Ford would receive no government contracts until he signed—and with the large increase in government agencies during the 1930s, that meant a huge loss of business.

According to usafacts.org, as of January 2023, Japan owned $1.1 trillion in US Treasuries, making it the largest foreign holder of the national debt. The second-largest holder is China, which owned $859 billion of US debt.

Foreign holders of United States treasury debt

Of the total 7.6 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 868.9 billion U.S. dollars in U.S. securities. Other foreign holders included oil exporting countries and Caribbean banking centers.

Top Foreign Holders of U.S. Debt

With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years.

Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial. Below are some of these options.

Therefore, China's national debt has surged almost three times that of the United States in the past 12 months. In the third spot, Japan has a national debt of $13.36 trillion, indicating a drop of $1.49 trillion YoY.

posted disappointing quarterly results Thursday, leading the U.S. auto maker to miss its full-year profit guidance for 2022, as supply-chain snags, quality problems and structural inefficiencies continued to drag on earnings. The Dearborn, Mich.

Keeping the businesses under a single corporate umbrella allows them to share technology and capital, he says, with Ford Model E benefiting from the cash flow and economies of scale of Ford's traditional business, while Ford Blue gets to piggyback off the technological innovations that the more software-focused ...

The Biggest Culprit: The Lenders

Most of the blame is on the mortgage originators or the lenders. That's because they were responsible for creating these problems. After all, the lenders were the ones who advanced loans to people with poor credit and a high risk of default.

Who saved the 2008 recession? ›

1 By October 2008, Congress approved a $700 billion bank bailout, now known as the Troubled Asset Relief Program. 2 By February 2009, Obama proposed the $787 billion economic stimulus package, which helped avert a global depression.

The automotive industry was weakened by a substantial increase in the prices of automotive fuels linked to the 2003–2008 energy crisis which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy.

Though GM and Chrysler eventually did get a bailout — Ford did not need help because it had fortuitously secured a large amount of financing shortly before the crisis — it was not all sweetness and light.

The Ford Motor Company reported total debt around 139 billion U.S. dollars in 2022.

DETROIT — After closing the books on a $14.6 billion loss in 2008 — the worst annual result in its 105-year history — Ford Motor Company said Thursday that it would draw the last $10.1 billion from its lines of credit to add to its cash hoard so that it could survive the increasingly bleak vehicle market.

In average years, Ford gave away about 33 percent of his income. By way of comparison, most people in his tax bracket gave away 5 percent. What Ford himself considered to be the most genuine philanthropy were small gifts to individuals, of which he gave many.

Bush announced that he had approved the bailout plan, which would give loans of $17.4 billion to U.S. automakers GM and Chrysler, stating that under present economic conditions, "allowing the U.S. auto industry to collapse is not a responsible course of action." Bush provided $13.4 billion immediately, with another $4 ...

In fact, GM did not repay the loans with money it earned from selling cars. Instead, GM repaid the TARP loans with money it withdrew from another TARP fund at the Treasury Department. The day before the GM story broke, Neil Barofsky, the government TARP watchdog, testified before the Senate Finance Committee.

Ford Motor Company is not owned by another corporation; instead, it is only owned by shareholders. Since the shareholders are collectively the owners of the company, those with more shares technically own more of Ford Motor Co. Ever Wonder: Is the 2020 Ford Mustang all-wheel drive?

Which president bailed out the banks? ›

President Bush signed the bill into law within hours of its enactment, creating a $700 billion dollar Treasury fund to purchase failing bank assets. The revised plan left the $700 billion bailout intact and appended a stalled tax bill.

On this day in 2008, a week after Senate Republicans killed a Democratic-sponsored bailout bill, asserting it failed to impose sufficient wage cuts on autoworkers, President George W. Bush announced a $17.4 billion bailout to General Motors and Chrysler, of which $13.4 billion would be extended immediately.

In January 1914, Henry Ford started paying his auto workers a remarkable $5 a day. Doubling the average wage helped ensure a stable workforce and likely boosted sales since the workers could now afford to buy the cars they were making.

When Henry Ford introduced the moving assembly line in 1913 he loved it but his employees didn't. The work was boring and relentless, and worker turnover was high. To get workers to stay, Henry more than doubled their pay, from $2.34 per day to $5 per day.

On June 16, 1903, Henry and 12 others invested $28,000 and created Ford Motor Company. The first car built by the Company was sold July 15, 1903. Henry owned 25.5% of the stock in the new organization. He became president and controlling owner in 1906.

Apologists for the bailout assert that were it not for the federal government's emergency intervention, America would have lost one of its premier industries, along with a critical mass of skilled labor, physical plants, technology, and suppliers.

DETROIT — The U.S. government ended up losing $10.5 billion on the General Motors bailout, but it says the alternative would have been far worse.

General Motors long term debt for 2022 was $75.921B, a 0.35% increase from 2021.