RLSH700

Report: Ford Considers Taking Company Private

Friday , August 25, 2006

NEW YORK — Ford Motor Co. (F) is considering taking the company private, USA Today newspaper reported Thursday, citing a "source with direct knowledge of the discussions."

That would give the automaker time to restructure operations outside the glare of critics, the article on the paper's Web site said.

"The family is willing to look at anything," USA Today quoted the source as saying. Top executives have said they are looking at every option available to turn Ford around, including selling off brands such as Jaguar, entering into partnerships with other automakers, slashing its work force and closing more plants, the article said.

A Ford spokesman said: "This is speculation and we don't comment on speculation."

Earlier in August, Ford said it hired mergers and acquisitions expert Kenneth Leet as an adviser to Chief Executive Bill Ford Jr. to explore strategic alternatives for the automaker. The Ford family owns about 5 percent of Ford's shares and controls about 40 percent of the voting power through a separate class of stock.

Ford, which is battling shrinking U.S. market share and rising costs, also recently announced plans to cut fourth-quarter production as it accelerates a turnaround plan. The company is responding to weakening U.S. demand for fuel-hungry trucks and SUVs amid high gasoline prices.

Shares of Ford rose 1.5 percent to $7.88 in late-morning trading on the New York Stock Exchange. Ford's 7.45 percent note due in 2031 rose to 76.75 cents on the dollar, from 76.25 cents, according to MarketAxess. Ford's 7 percent note due 2013 rose slightly to 90.938 cents on the dollar, from 90.5 cents, according to MarketAxess.

"It looks as if financially it would be something they could do," Margaret Patel, senior vice president at Pioneer Investments said of the USA Today article. "What they would accomplish by becoming a private company as it relates to cars I'm not really sure. Except for being out of the public eye, I don't know that there would be material benefits," Patel said.

http://www.foxnews.com/story/0,2933,210307,00.html

Jeremiah 29:11

Ford certainly needs to think outside the box with their next generation cars.

Gas guzzling SUV's and trucks are out of vogue......so how come Honda figured that out back in the'70's and we can't.

Amazing how gasoline prices are affecting us again just like in 1973 when it would take 20-60 minutes to get a tank of gas at the gas pumps.

RLSH700

This appears to be an attempt by Ford to improve their fuel economy in their trucks.

Ford to Unveil New Clean-Burning Diesel Pickup

Tuesday , August 22, 2006

DETROIT — Ford Motor Co. (F) will soon unveil a new series of large F-Series pickup trucks powered by an optional new clean-burning diesel engine, company officials said Monday.

The new 6.4-liter diesel engine will be larger than the current 6-liter engine and will produce more horsepower, but it will have better fuel economy and be quieter than its predecessor, the company said.

It also will comply with new federal regulations for diesel engines that call for a 90 percent reduction in particulate pollution for vehicles produced after Jan. 1.

The company will achieve the reduction by using high-precision fuel injectors and a particulate filter similar to a small incinerator that further burns the particles to scrub the black smoke from exhaust fumes, said Barb Samardzich, Ford's vice president for powertrain operations.

The filter, which will be at the front of the exhaust system, will burn the particles safely, and the exhaust will be the same temperature as in current diesel vehicles by the time it reaches the tailpipe, she said.

Exhaust from the new engine will be as clean as the exhaust from gasoline engines, she said.

The F-250 and F-350 trucks will go on sale early next year. Ford would not release fuel economy statistics or pictures of the new trucks for competitive reasons, said spokesman Said Deep.

The trucks also will be cleaner because of low-sulfur diesel fuel standards that take effect across the country Oct. 15, according to the U.S. Environmental Protection Agency.

The EPA said the fuel will cut sulfur emissions by 97 percent compared with fuel now being distributed.

http://www.foxnews.com/story/0,2933,209749,00.html

RLSH700: Improving the fuel economy on their Diesel is a nice start; however, they should offer a smaller diesel for the F-150 model.

Jeremiah 29:11

The technology was there years ago, but they just drag their feet until something drastic happens to force them to do it.

RLSH700

What I can't figure out is they can't offer anywhere close to the same fuel mileage as the Corolla or Civic. It isn't rocket science, it's simple gearing and offering similar displacement. Or how about offer the same as the Camry or Accord. It isn't that hard.

I don't think we will have the lines like they did back then unless the fuel prices are frozen. We are just going to have to produce more oil because most of why the prices are high is the dramatic increase in use by the Chinese, and use new fuels like Butanol and Bio-Diesel.

RLSH700

That is their problem. It is a well known fact that the most innovative companies are the ones that succeed not the ones that lay around all day long reintroducing the same old product over and over again.

Jeremiah 29:11

I commented about the length of the gas lines because history could repeat itself.

I think the problem is American cars are bigger and heavier and it they may them lighter and like you said
with gearing and adjusting displacement they would get better MPG.

They also need to make these smaller cars fun to drive and not so boring and they better be reliable.

Years ago a survey was done and American cars were make poorly because the thought was Americans didn't keep cars longer than 3 years anyway.

While American cars are now more reliable than before they have not gotten better than Japanese cars. That is a long Stigma to shake off.

Look how long it took Audi to shake the issue of the transmission shifting into gear by itself while parked. That hurt them for a long time.

RLSH700

It could depending on what happens in Washington.

You hit the bullseye. My brother went car shopping and he had trouble finding cars he really liked. He was considering the Mazda 3 because it was fun to drive and sporty looking. That is why those sell well. The stockholders should fire Bill Ford and hire the guys at Mazda. They obviously are in touch with modern day Americans.

Well its getting very close now between the two. Toyota has been having a lot quality problems. That will catch up to them eventually. The problem that the Big Three has is the public hasn't forgiven their mistakes in quality. It takes forever to get forgiveness from the costumers.

Jeremiah 29:11

I would love to see a $30K Ford GT like car.

That would sell real well.

RLSH700

It's funny you should mention that. Back in the early 90s, Ford was intending to use the SHO V6 line for a mid-engine sports car. It wouldn't be anywhere as fast as the GT; however, it would be a lot more affordable than the GT. I think they should have made it to replace the slow selling T-Bird. Here is the only thing I have ever heard about it. http://en.wikipedia.org/wiki/Ford_SHO_V6_engine