With dealerships closed for the time being, Ford is losing billions of dollars every quarter. Ford's bond rating has also recently been downgraded to junk status. Now, we're left with a question: is Ford going bankrupt?
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With demand shrinking and dealerships remaining closed for the time being, ford has been piling up a boatload full of debt, giving it the highest chance of bankruptcy. Out of all the automakers in that number is projected to accelerate as the shutdown continues, but how do miss the automaker really and what are the chances of Ford going bankrupt if you new to the channel, please consider subscribing and let's get right into it. It's no secret that the legacy automakers are years behind Tesla when it comes to electric vehicles, while some automakers, including Volkswagen, are spending tens of billions of dollars on electric vehicles. The management at Ford refuses to do so.

In fact, out of Volkswagen, General Motors Toyota, mercedes-benz and Ford Ford is the automaker that is investing the least amount of money into electric vehicles. This doesn't come as a surprise as Ford's best-selling vehicle. The f-150 has seen little to no innovation over the past few years. This slow innovation has led to declining sales over the past few years and with Ford stat piling up, we are left with a question: will Ford go bankrupt with Ford's long term debt at 155 billion dollars? The company's credit has constantly been downgraded.

Ford's credit recently got downgraded to junk status, which means that from a lender's perspective, there's a high chance. Ford never pays the lender back as a result. These loans must yield very high interest despite being downgraded to junk status. Ford continues to lend money.

Most recently Ford took out an eight billion dollar loan, with an annual interest rate at over 9 %. To put this into perspective, just four months before Ford made this loan, the company was able to get a loan with an interest rate of three to five percent. With interest rates, this high Ford's loans will strain the company's cash flow and spiral the company into bankruptcy. If a short-term miracle doesn't happen, in 2019, Ford had to pay a total of 1 billion dollars just from loan interest, and that number is tolerating as Ford continues to take high interest loans.

If you top it off, Ford's cash flow is deteriorating, as their margins continue to decrease. In the fourth quarter, us margins for Ford dropped. An eight point: eight percent to 2.8 percent in Fords margins in Europe in China dropped to 0.3 percent and negative 21 point. Five percent respectively, you just heard that right, Ford's margin in China was negative.

Twenty one point: five percent and that's before the pandemic started, as you can probably guess. In the first quarter of 2024, jhin's have collapsed even more. In total, Ford lost two billion dollars in the first quarter, and that number is projected to increase for the following quarters. In the next quarter.

Ford is expected to lose another four point: seven billion dollars slowly shredding away at Ford's twenty five billion dollars worth of cash and cash equivalents, also keep in mind that Ford has fifty three billion dollars in current debt and 115 billion dollars in long-term debt. To top it all off, Ford has recently settled a lawsuit where the automaker was exposed, selling Ford, Fiestas and Ford Focuses, despite knowing that the vehicles have defective transmissions. This lawsuit resulted in an agreement where Ford would pay up to twenty two thousand dollars for each defective 2011 to 2016 Ford, Fiesta or 2012 to 2016 Ford Focus with millions of these vehicles out there. This could cost Ford up to five hundred million dollars.
Now that Ford's finances are in big trouble, it's just a matter of time before Ford goes bankrupt and the company's poor management makes the situation even worse. With Ford CEO, Jim Hackett, making over 17 billion dollars a year while being 65 years old Hackett has had no motivation to make risky moves, while Ford may be in lots of trouble, Jim doesn't care, as he is already well-off enough to retire, while still living luxuriously. As a result, Jim is not taking electric vehicle seriously. As when asked about his opinion on Elon Musk Hackett stated, I happened to compete with the rocket scientist.

Who's really smart, and I respect that about him and yet he's competing with the ultimate disrupter Henry Ford. To claim that Elon Musk is competing with Henry Ford, a man who's alive more than 100 years ago is beyond ridiculous. Now, behind all this smoke and fire, the numbers are showing that Ford's and may come within the next two years. At the rate that Ford is losing money, it would likely take a few years for four to officially go bankrupt.

However, because of the cyber truck Ford will likely go bankrupt within the next two years. In hindsight, it may seem insane to claim that a blocky truck that looks like it came out of Blade Runner would make Ford go bankrupt. Nevertheless, a deeper look shows that this may actually be true. Ford's prized f-150 is and has been Ford's most profitable vehicle and has carried forward through tough times.

One report stated that there has been no greater profit machine in the history of the industry than the f-series. With the Sabbath truck having over 600,000 CLE orders, the demand for cyber trucks were lower the demand for the Ford f-150. Once the cyber truck actually starts to hit the road, the electric pickup will steal a substantial amount of market share from the Ford f-150. Even if the cyber truck only takes five percent of the market share from the Ford f-150, this would still make a massive impact on Ford's profits, as the company would not be able to cover plenty of losses coming from its other vehicles.

Once Ford does go bankrupt, we'll be left with a looming question is Ford going to get bailed out by the government. Let me know what you think about whether Ford will get bailed out in the comment section below. If you enjoyed this video, please hit the like button and subscribe and I'll see you in the next one.

By Stock Chat

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25 thoughts on “Is ford going bankrupt?”
  1. Avataaar/Circle Created with python_avatars Rau Kenneth says:

    The stupidity of the American taxpayer is unrivaled in the world. USA automakers will always be bailed out. Blank checks.

  2. Avataaar/Circle Created with python_avatars apollo_1 says:

    Yes. Ford will get bailed out by goverment. It's the American way. Government can print money to the moon.

  3. Avataaar/Circle Created with python_avatars Daniel Stapler says:

    If Ford and GM get money from the government to bail them out they will need to be going electric imo.

  4. Avataaar/Circle Created with python_avatars Daniel Stapler says:

    One year after this video and Ford's share price has gone from $6 to $15 that is 2.5X so the share market has a different view. And it points towards asset inflation.

  5. Avataaar/Circle Created with python_avatars Dave Morgan says:

    No, I don’t think Ford will get bailed out, again. They certainly don’t deserve to…..👎🏻

  6. Avataaar/Circle Created with python_avatars MrGNX456 says:

    Fords vehicles are junk, I have a 2018 Ford raptor and I have had issue after issue , I also had a Ford Explorer sport, both turbos failed on that and was throwing white smoke, these vehicles aren’t cheap. i buy, not lease, after the raptor, this is my last Ford, my saving grace is the raptor has a decent resale so I won’t get hurt getting rid of it. Cant wait.

  7. Avataaar/Circle Created with python_avatars Simoun O'Brien says:

    The narrator saying Ford is making me laugh because it is true. Ford simply cannot "Afford" it's lifespan XD!!!

  8. Avataaar/Circle Created with python_avatars Steve Haines says:

    "Is ford going bankrupt?"
    Fuck yes i hope so!! They certainly deserve to with how many customets got bent over by them on their recall scams that they pretend to fix and force customers to pay for instead.

  9. Avataaar/Circle Created with python_avatars Antonio Costa says:

    Well, they haven’t got the bailout money as GM and Chrysler did in 07. Maybe they are overdue.

    Meanwhile they are conceding defeat in Brazil, Russia, Australia , soon China and India.

    Not to mention giving up on subcompacts in North America, while all Asian manufacturers still support the platform. Let’s not forget they are losing market share in Europe and Latin America

    So is safe to assume they will be swept away some time in this decade.

  10. Avataaar/Circle Created with python_avatars Angela Weathersbee says:

    Always had a Ford, but never again. Corporate bias against Conservatives. Stay out of politics Ford. Your job is to sell vehicles, not disenfranchise half of America.

  11. Avataaar/Circle Created with python_avatars Glide2010 says:

    We need to bail out Ford this is what happens when you have the Magnificent Union companies go under thank you unions.

  12. Avataaar/Circle Created with python_avatars Tim W says:

    When gm and chrysler got bailed out and filed bankruptcy ford mortgaged their factories they have always had a debt rating that was way more then they could ever pay back. The f150 can't save them anymore it's time everyone bailed on ford henry's company can no longer be saved

  13. Avataaar/Circle Created with python_avatars Michael Webster says:

    Ford goes bankrupt and the bond holders get all the equity during the reorganisation. Equity holders will get wiped out. Government won't bail out as it's not too big to fail and not systemically important.

  14. Avataaar/Circle Created with python_avatars SaharanStrawberry says:

    The comment section is filled with people saying they hate Ford and American cars and prefer Japanese cars or just don’t understand what he actually talking about.

  15. Avataaar/Circle Created with python_avatars Pies Thighsnfries says:

    My Ford was Focus was cheap but low quality.. broken .. they need to lead by copying Toyota quality

  16. Avataaar/Circle Created with python_avatars Ashley Lynn Bainter says:

    So technically I could take a DNA test and go with a lawyer to fire them. Pay a couple teams to arrest government around the world. For their crimes against all of humanity. Throw them in the privately owned prisons they built for us. Hire a staff to work at the prisons. And still have that forever tax adding to the fortune. Cool 🙃

  17. Avataaar/Circle Created with python_avatars Ashley Lynn Bainter says:

    He won't ever go bankrupt as long as people are buying any kind of vehicle. He also invented the idea for the forever tax. That is why he stopped production. For a little while. So the others could form. He will always be first. All pay him Lol 🙃 He was my great grandfather

  18. Avataaar/Circle Created with python_avatars Solenya says:

    While I am 100% bullish on Tesla, I think the defining moment won't happen until the Cybertruck proves at LEAST comparable to Ford trucks in regards to towing capacity and distance. Of course, battery day may prove that to already be in the bag, but what most people will wait on is to see how it holds up in normal work conditions when you work hundreds of miles away from anything. Which is where a lot of work trucks spend their time. I'm hoping for that myself.

  19. Avataaar/Circle Created with python_avatars R.W.B.2 reburg music says:

    Ford will come out ahead. Jim Farley is a savvy new C.E.O. It will be an exciting new decade for this auto maker.
    Henry Ford has his legacy. Just relax…
    Your analysis of Ford is inaccurate and incomplete.

  20. Avataaar/Circle Created with python_avatars min bannister says:

    Front wheel drive is cheap to produce, but it's just transport. Add to this the electronic nightmare of "computers" and female styling, bankruptcy shouldn't be a surprise.

  21. Avataaar/Circle Created with python_avatars Bob R. says:

    I am not 'in love' with Ford…but this guy seems to loverlook one thing…Ford's investment in Rivian to gain access to it's 'skateboard' platform…about as electric as it gets and as sophisticated as Tesla and anything else out there…Just hang on lets see what happens.

  22. Avataaar/Circle Created with python_avatars jose gonzales says:

    You think it is an accident?
    It is intentional.
    These board members rip off the the value and then leave the people holding the bag.

  23. Avataaar/Circle Created with python_avatars June Bug says:

    They will have us the people in USA bail them out just so they can move the jobs out of USA!

  24. Avataaar/Circle Created with python_avatars g d says:

    I don't think you have enough knowledge on ford, their products, business practices, or how they make their money to make this video. plus the Tesla truck is years years and more years away from being made. even tesla batteries can't push a truck with a 5000lb trailer more than 60 mi. that is a fact that will make the truck a toy, daily driver, not a truck to use as god intended.

  25. Avataaar/Circle Created with python_avatars Rick Reid says:

    Yup, Ford will get bailed out. They have D.C. in their pockets. Pathetic! Hasn't been my brand since 2003. I RAM the competition. Haha.

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