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Ford Motor Co. Message Board

  • infn444 infn444 Apr 1, 2013 12:59 PM Flag

    Ford has two main problems ---------1. Debt $105,000,000,000 Billion and 2 pensions

    which will continue to drag on PPS

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    • Ford "Total Debt" consists of about $14 billion in Automotive Operations debt and the rest is loans through Ford Motor Credit for financing of sales of Ford vehicles. That money will be paid back by the customers, and much of it with interest. Ford does not need to pay that.

      Now look at the exact same column for Toyota. Total Debt: $166 billion. Are you just as concerned for them, or even more so, since they have "more debt" than Ford?

      As for pensions: January 30, 2013 at 8:45 am
      Ford will pay down pension deficit
      Carmaker to add $5B in 2013 as global gap widens to $18.7B
      From The Detroit News

      Ford said its pensions are now underfunded by $18.7 billion worldwide, up from $15.4 billion. The automaker's U.S. pensions are underfunded by $9.7 billion, up from $9.4 billion.
      Low interest rates mean that companies must recalculate the "discount rate" in determining pension funding.

      "It's a real liability as of this minute but it's not something they have to worry about or pay now," said Van Conway, CEO of Birmingham-based advisory firm Conway MacKenzie in a telephone interview.

      Ford dropped its discount rate 0.8 percent, accounting for the pension plan underfunding boost.
      "Anyone that has a defined benefit plan is suffering from these record-low discount rates," Ford CFO Bob Shanks said in a teleconference with analysts and reporters Tuesday morning. "We do expect discount rates to start to increase as we move forward."

      Ford said its pension plans earned 14.2 percent in 2012, up from 7.7 percent in 2011. Ford's pension plans beat the S&P 500 index, which was up 13 percent last year.

      The automaker said in reviewing its 2012 performance that it "began actions to de-risk our funded pension obligations."

      Ford offered pension buyouts to 98,000 qualifying white-collar retirees and former workers. Those buyouts will continue through the end of the year.


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