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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Killswitch who wrote (14906)	10/29/2002 11:11:29 AM
From: robert b furman	Read Replies (1) \| Respond to of 19219

Ford biggest problem is the portfolio of loans.They funneled great profits from their successful trucks and SUV into financing entry level cars and small trucks. This was an overly aggressive display of too much testosterone. The reality of the market place is no Domestic car maker can profitably compete on any car smaller than a maliby/grand am. Huge growth in the subcompact markets has been made by Hyundai and Kia. Ford tried to buy their way into a profitless market by taking on poor credit risks. When you read about Ford Bond rating dropping this is the first kiss of death. As bond risk goes up it requires a higher yield to be paid.The higher yield is a competitive expense. To turn a por performing loan portfolio is a long term task and Ford is not even half way through. In the midst of writing off poor performing loans -they should be coming out with new models that bring profits - instead they are deferring new models. Ford may not have the staying power.After all Chrysler is now in effect gone. Notice the global positioning of GM.They are minotity owners of Suzuki,Isuzu,Daewoo(just recently)Shanghai -China,Fiat,Renault. When you add up the pie - Toyota,Chrysler Benz and GM will be the global auto producers. Even Honda and Ford are destinned to be acquired - IMHO. Bob