$Ford Motor (F.US)$ You don't survive over 100 years by doin...
$Ford Motor(F.US$ You don't survive over 100 years by doing knee-jerk reactions. Spinoff's are pretty much just financial manipulation at this level.
F has decades of ICE vehicles ahead and possibly they will always outsell EVs.
When gm announced they are going "All-EV Future" globally, I knew it was a yuge mistake and one that will almost certainly be reversed.
That's why F has been around 100 years and no other US car maker comes close.
$General Motors(GM.US$ $Tesla(TSLA.US$
$General Motors(GM.US$ $Tesla(TSLA.US$
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wild horse : The base premise of this spin off argument is that Ford and GM need outside equity cash to fund BEV development. Thats plain wrong.
For example - Ford spends $7 billion annually on CAPEX. Ford does this via the $8-12 billion of Operating Cash that Ford spins off every year. $7 billion annual CAPEX is more than enough to fund BEV development.
If Ford needed more capital it can easily tap its dirt cheap $15 billion line of credit instead of expensive equity.
Honestly - the fellow who came up with the spin-off premise didn’t spend 10 minutes checking the numbers. What a waste of time
Milenko wild horse : Not sure those numbers will work out if the EV build out is faster than 2035.
Equity is a nice alternative to debt and convertible bond offerings as well. We would need to see how that effects Credit and debt servicing. If we hit a recession debt is not going to help.
T_shares Milenko : BEVs are no big deal. It’s still just a car. All the big OEMs have ginormous development budgets and pipelines. The ankle biter noobs can hardly keep up. For example Tesla only spends $1 - 2 billion on development annually. Little Ford crushes that pathetic budget by many times. VW and Toyota spend about twice what Ford does.
Tesla‘s inability to spend on development shows in it’s aging thin product line up and nothing in the pipeline.
It’s not even close
EEC6iRWd4p T_shares : Correct! And, these irrational valuation of start up EV companies is insanity. There is no way to justify the prices these equities are achieving now or in the next 3 years.
TvhXCjkODq : No, Ford and GM have to carve out EV focused biz with no distractions, new names, new leadership, and new global alliances in AI, batteries, communications etc..These new companies won't be saddled with union problems, recalls, high debt levels and other legacy problems.
vYcu5FgULx : Like when GM invested in Nickola or Lordstown?
rvsESOg2h3 vYcu5FgULx : exactly why GM needs a standalone EV biz with young, brilliant futurist mgt that can plug in to this enormous new nexus